大东海B:2019年半年度报告(英文版)

    司公限有份股心中游旅海东大南海                                   2019   文全告报度年半年
Stock Code: 000613, 200613           Short Form of the Stock: Dadonghai-A, Dadonghai-B




        海南大东海旅游中心股份有限公司
       Hainan       Dadonghai Tourism Centre (Holdings)               Co., Ltd.




                     Semi-Annual Report 2019
                           (Full-text)




                         Disclosure Date: 10 August 2019




                                            1
       司公限有份股心中游旅海东大南海                                                                          2019   文全告报度年半年

                Section I. Important Notice, Contents and Paraphrase


      Important Notice:

      Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of
      Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. (hereinafter referred to as the
      Company) hereby confirm that there are no any fictitious statements, misleading statements, or
      important omissions carried in this report, and shall take all responsibilities, individual and/or
      joint, for the reality, accuracy and completion of the whole contents.
      Yuan Xiaoping, Principal of the Company, Fu Zongren, person in charger of accounting works
      and Fu Zongren, person in charge of accounting organ (accounting principal) hereby confirm
      that the Financial Report of 2019 Semi-Annual Report is authentic, accurate and complete.
      All directors are attending the Board Meeting for Report deliberation.
      The Company has no plan of cash dividends carried out, bonus issued and capitalizing of
      common reserves either.
      Concerning the forward-looking statements with future planning involved in the Report, they
      do not constitute a substantial commitment for investors. Investors are advised to exercise
      caution of investment risks.

                                                               Content

Semi-Annual Report 2019....................................................................................................................1

Section I Important Notice adn Paraphrase.......................................................................................... 2

Section II Company Profile and Main Finnaical Indexes.................................................................... 5

Section III Summary of Company Business........................................................................................ 8

Section IV Discussion and Analysis of Operation............................................................................. 10

Section V Important Events................................................................................................................16

Section VI Changes in shares and particular about shareholders.......................................................27

Section VII Preferred Stock................................................................................................................31


                                                                     2
       司公限有份股心中游旅海东大南海                                                                          2019   文全告报度年半年
Section VIII Particulars about Directors, Supervisors and Senior Executives...................................32

Section IX Corporate Bonds...............................................................................................................33

Section X Financial Report................................................................................................................ 34

Section XI Documents available for reference.................................................................................121




                                                                     3
        司公限有份股心中游旅海东大南海                                                            2019   文全告报度年半年

                                                 Paraphrase


              Items               Refers to                                     Contents

 CSRC                             Refers to   China Securities Regulation Commission

 SSE                              Refers to   Shenzhen Stock Exchange

 Company Law                      Refers to   Company Law of The People’s Republic of China

 Securities Law                   Refers to   Securities Law of The People’s Republic of China

 Company, the Company             Refers to   Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.

                                              Article of Association of Hainan Dadonghai Tourism Centre (Holdings) Co.,
 Article of Association           Refers to
                                              Ltd.

                                              Shareholders’ General Meeting of Hainan Dadonghai Tourism Centre
 Shareholders’ General Meeting   Refers to
                                              (Holdings) Co., Ltd.

 Board                            Refers to   Board of Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.

                                              Supervisory Committee of Hainan Dadonghai Tourism Centre (Holdings) Co.,
 Supervisory Committee            Refers to
                                              Ltd.

 Yuan                             Refers to   CNY/RMB


                                                Risk Warning

Securities Times, Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn) are the
media for information disclosure appointed by the Company for year of 2019, all information under
the name of the Company disclosed on the above said media shall prevail.
The report is prepared in bilingual versions of Chinese and English respectively, in the event of any
discrepancy in understanding the two aforementioned versions, the Chinese version shall prevail.
Investors are advised to exercise caution of investment risks.




                                                           4
        司公限有份股心中游旅海东大南海                                                                2019   文全告报度年半年
                Section II. Company Profile and Main Financial Indexes

I. Company information

 Short form of the stock                Da donghai-A, Dadonghai-B       Stock code                   000613, 200613

 Short form of the Stock after
                                        N/A
 changed

 Stock exchange for listing             Shenzhen Stock Exchange

 Name of the Company (in Chinese)       司公限有份股心中游旅海东大南海
 Short form of the Company (in
 Chinese)
                                        海东大
 Foreign name of the Company            Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd

 Foreign name of short form of the
                                        DADONGHAI
 Company

 Legal representative                   Yuan Xiaoping


II. Person/Way to contact

                                                      Secretary of the Board                    Rep. of security affairs

 Name                                         Wang Hongjuan

 Contact add.                                 Dadonghai Sanya

 Tel.                                         0898-88219921

 Fax.                                         0898-88214998

 E-mail                                       hnddhhn@21cn.com


III. Others

1. Way of contact

Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or
not
□ Applicable    √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company have no change in reporting period,
found more details in Annual Report 2018.


2. Information disclosure and preparation place

Whether information disclosure and preparation place changed in reporting period or not



                                                                5
       司公限有份股心中游旅海东大南海                                                                   2019   文全告报度年半年
□ Applicable    √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation
place for semi-annual report have no change in reporting period, found more details in Annual Report 2018.


IV. Main accounting data and financial indexes

Whether it has retroactive adjustment or re-statement on previous accounting data
□ Yes √ No

                                                                                    Same period      Increase/decrease in this report
                                                                 Current period
                                                                                     of last year                 y-o-y
 Operating revenue (RMB)                                         14,241,961.04      16,173,929.32                            -11.94%
 Net profit attributable to shareholders of the listed company
                                                                      755,974.01     1,282,165.58                            -41.04%
 (RMB)
 Net profit attributable to shareholders of the listed company
                                                                      595,943.55     1,282,370.56                            -53.53%
 after deducting non-recurring gains and losses (RMB)
 Net cash flow arising from operating activities (RMB)               1,269,416.65    3,110,677.60                            -59.19%
 Basic earnings per share (RMB/Share)                                     0.0021           0.0035                            -40.00%
 Diluted earnings per share (RMB/Share)                                   0.0021           0.0035                            -40.00%
 Weighted average ROE (%)                                                  0.97%           1.65%                              -0.68%
                                                                                                        Increase/decrease in this
                                                                 End of current      End of last
                                                                                                       report-end over that of last
                                                                       period          period
                                                                                                                period-end
 Total assets (RMB)                                              87,407,933.32      88,197,118.07                             -0.89%
 Net assets attributable to shareholder of listed company
                                                                 78,544,670.30      77,788,696.29                              0.97%
 (RMB)


V. Difference of the accounting data under accounting rules in and out of China

1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)

□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International
Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.


2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)

□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in the period.




                                                                 6
         司公限有份股心中游旅海东大南海                                                                    2019   文全告报度年半年
VI. Items and amounts of extraordinary profit (gains)/loss

√Applicable    □ Not applicable
                                                                                                                                In RMB

                      Item                                   Amount                                       Note

 Other                                                                  160,030.46   Clean up long-term unpaid payable

 Total                                                                  160,030.46                          --

Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable    √ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of
extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public --- Extraordinary Profit/loss




                                                                    7
      司公限有份股心中游旅海东大南海                                                                       2019   文全告报度年半年

                          Section III. Summary of Company Business

I. Main businesses of the company in the reporting period

Whether the company needs to comply with the disclosure requirements of the particular industry
No
The company's main business is hotel accommodation and catering services. Procurement of goods is mainly the goods and materials
necessary for hotel and catering operations by taking the principle of low price and fine quality, some goods are purchased by
directly signing purchase contracts with suppliers, and some good are purchased by procurement agents. The operation are mainly
including the network billing and overseas travel agency team, and supplemented by the individual travelers of non-internet
marketing and business and the tourists from travel agencies. The hotel is located at the central zone of Dadonghai scenic spot in
Sanya City, Hainan Province, and it has become a member of the nationwide famous hotels because of the convenient transportation,
beautiful environment, long history, and rich culture. However, in recent years, the local high-, middle- and low-grade hotels or
guesthouses numerously emerge, resulting in the supply much larger than the market demand, the industry competition is rather
fierce, and the pressure of decline in business remains.


II. Major changes in main assets

1. Major changes in main assets


      Major assets                                                  Note of major changes


                          Decreased 0.27 million Yuan over that of year beginning, mainly because funds returned increased in
 Account receivable
                          reporting period

                          Increased 0.78 million Yuan over that of year beginning, mainly because the petty cash and court fee
 Other receivables
                          increased at end of the period


2. Main overseas assets

□ Applicable √ Not applicable


III. Core Competitiveness Analysis

Whether or not the Company complies with disclosure requirement of the special industry
No
The company takes hotel accommodation and catering services as the principle works, locates at Dadonghai bay which is one of the
China “Top 40 scenery” and the only AAAA scenic spot open for free in Sanya and has the maximum passenger flow volume in
Sanya City, and is about a 5-minute drive from downtown of Sanya City and about a 30-minute drive from Sanya Phoenix Airport.
The hotel is only tens of meters distant from the sea level, possesses beautiful landscaping full of blooming flowers all the year round,
and enjoys exceptional geography, natural environmental advantages. The hotel has opened for more than two decades which is one
of the oldest hotels in Sanya and has received many domestic and foreign heads of state and national leaders. In the recent years, the

                                                                   8
      司公限有份股心中游旅海东大南海                                                                        2019   文全告报度年半年
company has comprehensively upgraded and rebuilt the hotel’s software and hardware facilities, further improved the hotels internal
and external business environment, and effectively enhanced the business competitiveness. Currently, the management of the
company’s hotel is still in the front rank among hotels in the same area, with the same scale, and at the same level.
In the future work, the company will keep trying to improve the hotel’s internal and external business environment, strengthen the
sales efforts and the staff construction, and further improve the operational capability. During the reporting period, the company's
core competence had no significant change.




                                                                    9
     司公限有份股心中游旅海东大南海                                                         2019   文全告报度年半年

                  Section IV. Discussion and Analysis of Operation

I. Introduction

During the reporting period, the company realized main business income of 14,242,000 Yuan, decreased by
1,932,000 Yuan compared with the same period last year, a decrease of 11.94%; net profit of 756,000 Yuan,
decreased by 526,200 Yuan compared with the same period last year, a decrease of 41.04%.

During the reporting period, the Company focus on market-oriented and use marketing strategy in a flexible way
to exploited the sales channel, meanwhile, strengthening enterprise culture construction as well as the employee
team-building, making efforts to improve product’s quality, strictly controlling the cost management, perfect the
Company’s internal control system in order to reduce the risks and consumption for more income earns and less
expenditure costs, we completed the operation targets that formulated at beginning of the year basically. Main
works are as:

1. Market-oriented, use marketing strategy in a flexible way to exploit the sales channel
During the reporting period, the Company actively expanded the network market, the Russian market and the
southwest, north, east and southern China markets in addition to further consolidating its existing customer bases
oriented by markets with flexible utilization of marketing strategies. Besides, increasing cooperation was made
by the Company with domestic and foreign well-known travel agencies, sales network platforms and direct-sale
travel agencies in the first and second tier cities. The Company also conducted implementation of sales
incentives and sales mechanism involving every staff, to increase the market share in terms of sales.

2. People-oriented, strengthen the enterprise with high-quality, strive to improve product quality and enhance the
competitive-ness of enterprises

In reporting period, in line with the Human-Oriented employment ideality, we continuously enriched the culture
life for employees, create a harmonious working environment and strengthen the construction of enterprise culture
and staff-building. At the same time, create new management mechanism, motivate and mobilized the enthusiasm,
initiative and creativity of the staff. Based on the management ideal of “strengthen the enterprise with
high-quality”, we constantly strengthen the hotel management and carried out skill training in pre-job for their
basic information and the after-job for business ability improvement. Enhance the service standards and
consciousness, as well as the sense of responsibility and quality, effectively improved the service quality and
management standards, and improving the quality of the hotel and comprehensive competitiveness.

3. Strictly curb the costs and budget management, improve internal control mechanism, reducing risks and
consumption, increase revenue and reduce expenditures, safety in production to maximize the interest of the
enterprise
During the reporting period, the Company continued to focus on financial management, improve the procurement


                                                         10
      司公限有份股心中游旅海东大南海                                                                      2019   文全告报度年半年
management system, strengthen management of procurement cost control and budget management, adopt
diversified means to obtain procurement price inquiry, such as network price inquiry, the hotel industry price
inquiry and other measures, obtain cost inquiry from over three suppliers to select the best one, control operating
costs in a scientific manner, strictly control various expense and expenditures, frequent inspection and repair to
prevent waste of resources, which enabled the Company to effectively improve the reasonableness of procurement
cost and cost effectiveness. Besides, human resources cost was effectively brought down due to optimized organ
establishment and personnel distribution. At the same time, the Company continued to improve the internal control
system, strengthen regulation and implementation of internal control system, strengthen the effective
implementation of internal control work, reduce risks and consumption, increase revenue and control expenditures,
emphasize production safety and improve operational efficiency, to ensure the operation safety and thus maximize
the interests of the Company as a whole.

In the second half of 2019, the Company continues to consolidate and expand sales channels, improve the hotel’s
quality and service standards, and enhance the comprehensive competitiveness, to laying out a solid foundation
for sustained, stable and healthy development of the Company.


II. Main business analysis

See the “I-Introduction” in “Discussion and Analysis of Operation”
Change of main financial data on a y-o-y basis
                                                                                                                              In RMB

                                                                               Y-o-y
                                                           Same period
                                       Current period                      increase/de                Reasons for changes
                                                            of last year
                                                                              crease

                                                                                         The main building of the hotel is decorating
 Operation revenue                      14,241,961.04      16,173,929.32       -11.94%
                                                                                         and renovating since May
                                                                                         The dining room was closed for decoration
 Operation cost                          5,514,477.93       6,000,063.36        -8.09%   due to the decoration in main building of the
                                                                                         hotel

 Sales expenses                          2,809,991.94       2,800,956.10        0.32%    Normal changes

 Administrative expenses                 5,071,800.21       5,356,455.21        -5.31%   Wages expenses declined

 Financial cost                           -133,732.09          17,563.19      -861.43%   Increase in interest on deposits

 Net cash flow arising from
                                         1,269,416.65       3,110,677.60       -59.19%   Decrease in operating income
 operation activities

 Net cash flow arising from                                                              More account paid for projects at same
                                          -522,876.00      -1,040,626.12       -74.38%
 investment activities                                                                   period of last year

 Net increase of cash and cash
                                           746,540.65       2,070,051.48       -63.94%   Decrease in operating income
 equivalent

Major changes on profit composition or profit resources in reporting period
□Applicable      √Not applicable

                                                                    11
      司公限有份股心中游旅海东大南海                                                                               2019   文全告报度年半年
No changes on profit composition or profit resources in reporting period
Constitution of main business
                                                                                                                                         In RMB

                                                                                                                              Increase/decrea
                                                                                 Increase/decrea       Increase/decrea
                           Operating       Operating            Gross profit                                                    se of gross
                                                                                 se of operating           se of operating
                           revenue            cost                 ratio                                                        profit ratio
                                                                                  revenue y-o-y              cost y-o-y
                                                                                                                                   y-o-y

 According to industries

 Tourism catering
                       14,241,961.04      5,514,477.93                61.28%               -11.94%                 -8.09%               -2.58%
 service

 According to products

 Room revenue          11,108,639.78      4,532,724.45                59.20%               -12.55%                 -2.84%               -6.43%

 Catering
 entertainment           1,562,368.88       744,491.70                52.35%               -18.28%               -32.16%                22.89%
 revenue

 Rental revenue          1,570,952.38       237,261.78                84.90%                0.78%                   0.00%               0.14%

 According to region

                       14,241,961.04      5,514,477.93                61.28%               -11.94%                 -8.09%               -2.58%


III. Analysis of the non-main business

√Applicable   □ Not applicable
                                                                                                                                         In RMB

                           Amount       Ratio in total profit                      Note                             Whether be sustainable

 Non operating
                           160,030.46                21.17%       Clean up long-term unpaid payable              No sustainable
 income


IV. Assets and liability

1. Major changes of assets composition

                                                                                                                                         In RMB

                             Current period-end                 Same period-end last year            Ratio
                                        Ratio in total                         Ratio in total     change            Notes of major changes
                        Amount                                  Amount
                                           assets                                 assets               s

                                                                                                                 Continuous net increase in
 Monetary fund       16,110,895.95             18.43%     11,751,658.64              13.36%          5.07%
                                                                                                                 cash since last year

 Account                                                                                                         Return of the receivables
                         155,986.88               0.18%         266,236.51             0.30%      -0.12%
 receivable                                                                                                      increased



                                                                     12
       司公限有份股心中游旅海东大南海                                                                2019   文全告报度年半年
 Inventory               191,693.57           0.22%       264,620.69              0.30%   -0.08%   Normal changes

 Investment real
                       8,147,218.65           9.32%      9,621,742.21             9.80%   -0.48%   Depreciation amortization
 estate

 Fix assets           34,997,520.16           40.04%   38,017,199.39           43.22%     -3.18%   Depreciation

 Other account
                       1,242,181.64           1.42%       800,136.44              0.91%   0.51%    Advance payment increased
 receivable

 Other current
                       2,125,619.16           2.43%      2,195,699.54             2.50%   -0.07%   Normal changes
 assets

 Long-term
 amortization          2,240,879.25           2.56%      2,678,016.88             3.04%   -0.48%   Amortization
 expenses


2. Assets and liability measured by fair value

□ Applicable √ Not applicable


3. Assets right restriction till end of reporting period

Nil


V. Investment

1. Overall situation

√Applicable    □ Not applicable

      Current investment amount (RMB)            Same period of last year (RMB)                    Changes (+,-)

                               1,000,000.00                             1,000,000.00                                   0.00%


2. The major equity investment obtained in the reporting period

□ Applicable √ Not applicable


3. The major non-equity investment doing in the reporting period

□ Applicable √ Not applicable


4. Financial assets investment

(1) Securities investment

□ Applicable √ Not applicable
The company had no securities investment in the reporting period.


                                                                13
      司公限有份股心中游旅海东大南海                                                                   2019   文全告报度年半年
(2) Derivative investment

□ Applicable √ Not applicable
The Company has no derivatives investment in the Period


VI. Sales of major assets and equity

1. Sales of major assets

□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.


2. Sales of major equity

□ Applicable √ Not applicable


VII. Analysis of main holding company and stock-jointly companies

□ Applicable √ Not applicable
The Company had no information of main holding company and stock-jointly companies disclosed in the reporting period.


VIII. Structured vehicle controlled by the Company

□ Applicable √ Not applicable


IX. Prediction of business performance from January – September 2019

Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the
warning of its material change compared with the corresponding period of the last year and explanation on reason
□ Applicable √ Not applicable


X. Risks and countermeasures

(1) Marco Policy risks
In order to normalize and optimize tourism market or further to promote clear-party construction, related
departments may further issue some relative policies. While these polices may cause restrain and effect on
regional tourism development. Main business income may be affected since we are engaged in tourism service.
Countermeasures: The Company will further to improve the hard and soft equipment and facilities of the hotel
while expanding the business scope, and win more market shares via high-class service and comfortable
environment so as to ensure the main business income level.

(2) Natural disaster risks

In recent years, various natural disasters take place frequently, Hainan Island belongs to oceanic climate, where
has high incidence of disastrous weather in summer. If Sanya becomes the landing place of typhoon, it may cause

                                                                14
     司公限有份股心中游旅海东大南海                                                       2019   文全告报度年半年
great damages to the facilities of the Company and affect the Company’s normal operation.
Countermeasures: The Company will strengthen the construction and maintenance for infrastructure, continue to
buy property insurances, positively adopt effective prevention measures, and improve the ability of resisting
natural disasters.

(3) Risks of HR

Demand for talent in aspect of hotel sales and management are increasingly due to the constantly rise of hotel
industry, flow of hotel talented people comes more widespread and more frequent; we may face the risks of
development restrained from brain drain.

Countermeasure: we will continue to improve the talent introduction, training system, incentive mechanism,
remuneration and welfare as well as insurance mechanism, strive to attract talent, cultivate them and retain them.
Meanwhile, strengthen staff quality and skills as well as the management ability, further putting more efforts in
enterprise culture construction, enhance the cohesion in the Company, and guarantee a stable of the core managers
and skill technicians.

(4) Operational risks of main business
With the ceaseless development of global tourist industry constantly and ceaseless rising of high-class,
middle-class and low-class hotels, the tourist sources keep shunting, and the competition of tourism service
industry in Sanya becomes increasingly fierce. While the main business of the Company is just a small-scale hotel,
as the main business is single and the business scope is limited, the tourist market conditions and tourist quantity
directly make significant affects on the company performance.

Countermeasure: made a scientific management and decision-making procedures, strengthen the awareness of risk
prevention, building and improving relevant mechanism and standardized the management in the Company.
Furthermore, increase the sales ability, on base of the former sales network, continues to exploit foreign high-end
tourism market under the superior geographical location and environment for improving the occupancy rate.
Besides, we continued to develop financing channels, expanding operation projects, enrich the industrial structure
for increasing the profit increasing point.




                                                        15
        司公限有份股心中游旅海东大南海                                                                           2019   文全告报度年半年

                                         Section V. Important Events

I. In the report period, the Company held annual general meeting and extraordinary
shareholders’ general meeting

1. Annual General Meeting in the report period


 Session of                 Ratio of investor
                  Type                                Date          Date of disclosure                      Index of disclosure
   meeting                    participation

                                                                                           The “Resolution Notice of Annual General
                Annual                                                                     Meeting of 2018” (No.: 2019-012) published on
 AGM of
                general              31.66%       2019-3-22                   2019-3-23    Securities Times, Hong Kong Commercial Daily
 2018
                meeting                                                                    and Juchao website (http://www.cninfo.com.cn)
                                                                                           dated 23 March 2019 respectively


2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore

□ Applicable    √ Not applicable


II. Profit distribution and capitalization of capital reserves in the Period

□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for
the semi-annual year


III. Commitments completed in Period and those without completed till end of the Period
from actual controller, shareholders, related parties, purchaser and companies

√Applicable    □ Not applicable

                                              Type of
                                                                                                                Commit     Comm
                                                                                                                                    Implement
        Commitments           Promise     commitme                      Content of commitments                   ment      itment
                                                                                                                                      ation
                                                                                                                 date       term
                                                nts

                                                             On May 30, 2007, Luoniushan Co., Ltd. made                             The
                                                             commitments in the Company’s "Instructions                            original
                                          Commitm
                              Luonius     ents for           for reform of non-tradable shares" (Revision)                          plans of
                                                                                                                             6
 Commitments for              han                            and "Instructions for reform of non-tradable       2017-06             material
                                          Share                                                                            month
 Share Merger Reform          Co.,                           shares" (Abstract of revision) that in view of     -27                 assets
                                          Merger                                                                             s
                              Ltd         Reform             Dadonghai Company’s losses in successive                              reorganizat
                                                             years and on the verge of delisting, in order to                       ion was
                                                             reverse the company's business difficulties,                           terminated


                                                                        16
     司公限有份股心中游旅海东大南海                                                                        2019   文全告报度年半年
                                                       improve    profitability   and     recover    the
                                                       continuous business capacity, Luoniushan
                                                       Co., Ltd., the controlling shareholder of
                                                       Dadonghai Company made commitments to
                                                       actively   seek    restructuring    parties    to
                                                       reorganize the assets of Dadonghai Company
                                                       at the appropriate time.

Commitments in report
of        acquisition or
equity change

Commitments in assets
reorganization

Commitments make in
initial public offering or
re-financing

Equity            incentive
commitment

Other commitments for
medium and small
shareholders

Completed        on   time
                              N
(Y/N)
                              The company’s stock has been suspended since the opening on February 15, 2017 due to the planning and
                              fulfillment commitments of Luoniushan. On August 13, 2017, the consideration of the 11th interim meeting
                              of the eighth board of directors of the company failed to approve the “Proposal on Major Asset Purchase
                              and Related Transaction Report (Plan) of Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.” and
                              other 11 proposals. On August 15, 2017, the company issued an announcement to terminate this major asset
                              restructuring, and the company’s stock resumed trading on August 17th. Currently, the company has no
                              information that should be disclosed but not disclosed.
                              On December 4, 2017, the board of directors and the board of supervisors of the company reviewed and
If the commitments is
                              approved the Proposal on the Change of Commitment Period of the First Majority Shareholder of the
not fulfilled on time,
                              Company. Luoniushan Co., Ltd., the company’s first majority shareholder planned for a two-year extension
shall explain the specify
                              for the time limit of the company’s restructuring commitment since December 27, 2017, that is, the
reason and the next
                              deadline for the implementation of the restructuring commitment was changed to December 26, 2019. On
work plan
                              December 22, 2017, the company’s fourth extraordinary shareholders’ meeting in 2017 did not approve the
                              proposal.
                              On January 31, 2018, the company received the Notice on Planning for Suspension of Major Events sent by
                              Luoniushan Co., Ltd., the company’s largest shareholder, to plan and prepare the major issues related to the
                              company. Upon application by the company, the company’s stock (stock short name: Dadonghai A,
                              Dadonghai B, stock code: 000613, 200613) was suspended since the opening on January 31, 2018. Upon
                              application by the company, the company’s stock resumed trading on February 8, 2018, and was transferred
                              to the major asset restructuring since the opening on February 14, 2018.


                                                                  17
           司公限有份股心中游旅海东大南海                                                                                 2019   文全告报度年半年
                                       On June 25, 2018, the company held the third interim meeting of the ninth board of directors which
                                       reviewed and approved the Proposal on Terminating the Planning for Major Asset Restructuring. After
                                       careful study, the board of directors of the company decided to terminate the planning for this major asset
                                       restructuring.


    IV. Engagement and non-reappointment of CPA

    Whether the semi-annual report was audited or not
    □Yes √ No
    The semi-annual report of the Company had no audited.


    V. Explanation from the Board and Supervisory Committee for “Qualified Opinion” from the
    CPA

    □ Applicable √ Not applicable


    VI. Explanation on “Qualified Opinion” of previous year from the Board

    □ Applicable √ Not applicable


    VII. Bankruptcy reorganization

    □ Applicable √ Not applicable
    In reporting period, the Company has no bankruptcy reorganization occurred.


    VIII. Lawsuits

    Significant lawsuits and arbitration of the Company
    √Applicable       □ Not applicable

                                             Whet
                                              her                                                                 Executi
                                               to                                                                  on of
                                                                                                   Litigation                    Date
                                Amount       Form                                                                 Litigati
                                                                                                   (Arbitratio                    of
   Basic Situation of           Involve        an                                                                   on
                                                          Litigation (Arbitration) Progress         n) Trial                     Disc     Disclosure Index
 Litigation (Arbitration)          d          Esti                                                                (Arbitra
                                                                                                    Results                      losur
                                 (Yuan)      mate                                                                  tion)
                                                                                                   and Impact                      e
                                               d                                                                  Judgme
                                             Liabi                                                                   nt
                                              lity

The plaintiff, China                                    The plaintiff, China Cinda Asset           The    first                  2018    Announcement on
Cinda Asset Management           3,431.1                Management     Co.,        Ltd.   Hainan   instance                      -11-    Significant
                                             No                                                                   N/A
Co., Ltd. Hainan Branch,                7               Branch, sued the defendants, Hainan        judgment                      22;     Litigation
sued the defendants,                                    Dadonghai Tourism Centre (Holdings)        dismissed                     2019    (Announcement


                                                                              18
             司公限有份股心中游旅海东大南海                                                                                  2019   文全告报度年半年
Hainan Dadonghai                              Co., Ltd. and Sanya Yueya Real Estate                        the     claim            -1-5;   No.: 2018-061)
Tourism Centre                                Development            Corporation,              for    a    of          the          2019    published by
(Holdings) Co., Ltd. and                      financial        loan       contract         dispute,        plaintiff                -1-3    Securities Times,
Sanya Yueya Real Estate                       appealing        to      Hainan        Dadonghai             China                    1;      Hong Kong
Development                                   Tourism Centre (Holdings) Co., Ltd.                          Cinda                    2019    Commercial Daily
Corporation, for a                            to repay the loan of 5 million yuan                          Asset                    -4-2    and
financial loan contract                       and the loan interest of 29,311,700                          Manageme                         www.cninfo.com.c
dispute, appealing to                         yuan temporarily calculated to April                         nt       Co.,                    n.
Hainan Dadonghai                              30, 2018, Sanya Yueya Real Estate                            Ltd.                             Announcement on
Tourism Centre                                Development            Corporation assumes                   Hainan                           Significant
(Holdings) Co., Ltd. to                       the joint and several liability, and the                     Branch,                          Litigation Progress
repay the loan of 5                           two defendants bear litigation costs. In                     and         the                  (Announcement
million Yuan and the loan                     the course of the litigation, the                            case                             No.: 2019-001)
interest of 29,311,700                    plaintiff added the company as a                                 acceptance                       published by
Yuan temporarily                              co-defendant and required the court to                       fee      and                     Securities Times,
calculated to April 30,                       order the company to assume joint and                        property                         Hong Kong
2018, Sanya Yueya Real                        several liability for the above debts of                     preservatio                      Commercial Daily
Estate Development                            Hainan Dadonghai Tourism Centre                              n                                and
Corporation assumes the                       (Holdings)        Co.,         Ltd.        For         the   application                      www.cninfo.com.c
joint and several liability,                  above-mentioned case of principal of                         fee     were                     n.
and the two defendants                        5 million yuan, the verdict of Civil                         borne       by                   Announcement on
bear litigation costs. In                     Judgment (2018) No.Q02MC76 from                              China                            Significant
the course of the                             the Intermediate People’s Court Sanya                       Cinda                            Litigation Progress
litigation, the plaintiff                     dismissed the claim of the plaintiff                         Asset                            (Announcement
added the company as a                        China Cinda Asset Management Co.,                            Manageme                         No.: 2019-003)
co-defendant and                              Ltd. Hainan Branch, and the case                             nt       Co.,                    published by
required the court to                         acceptance            fee      and          property         Ltd.                             Securities Times,
order the company to                      preservation              application          fee     were      Hainan                           Hong Kong
assume joint and several                  borne           by        China         Cinda         Asset      Branch.                          Commercial Daily
liability for the above                       Management              Co.,        Ltd.         Hainan      The                              and
debts of Hainan                               Branch. The plaintiff Hainan Cinda                           judgment                         www.cninfo.com.c
Dadonghai Tourism                             refused to accept the first-instance                         of the first                     n.
Centre (Holdings) Co.,                    judgment and appealed to the Hainan                              instance
                                                                                                                                            Announcement on
Ltd.                                          Higher People’s Court. On March 28,                         has         no
                                                                                                                                            Significant
                                              2019, the verdict of Civil Judgment                          impact on
                                                                                                                                            Litigation Progress
                                              (2019)      No.QMZ96             from            Hainan      the
                                                                                                                                            (Announcement
                                              Higher People’s Court dismissed the                         company,T
                                                                                                                                            No.: 2019-013)
                                              appeal      and       upheld         the     original        he second
                                                                                                                                            published by
                                          judgment; the second-instance case                               instance
                                                                                                                                            Securities Times,
                                              acceptance fee was borne by Hainan                           upheld the
                                                                                                                                            Hong Kong
                                              Cinda; this judgment is the final                            first-instan
                                                                                                                                            Commercial Daily
                                          judgment.                                                        ce
                                                                                                                                            and
                                                                                                           judgment,
                                                                                                                                            www.cninfo.com.c
                                                                                                           therefore,


                                                                             19
            司公限有份股心中游旅海东大南海                                                                              2019   文全告报度年半年
                                                                                             the lawsuit                                 n.
                                                                                             had          no
                                                                                             effect       on
                                                                                             the
                                                                                             company’s
                                                                                             current
                                                                                             profit and
                                                                                             future
                                                                                             profit.

                                                                                             The
                                                                                             company
                                                                                             has written
Hainan          Dadonghai
                                                                                             off          the
Tourism Centre Group
                                                                                             borrowing
Co., Ltd. borrowed 2.76
                                                                                             s     of     the
million yuan and 4.55
                                                                                             case in full
million     yuan        from
                                                                                             amount in
Hainan          Dadonghai                                                                                                                Announcement on
                                                                                             2008.        At
Tourism               Centre                                                                                                             Significant
                                                                                             present,
(Holdings) Co., Ltd. on                                                                                                                  Litigation
                                                   On June 3, 2019, the company              the         case
October 16, 1996 and                                                                                                                     (Announcement
                                                   received the "Notice of Accepting         has          not
December        26,     1996                                                                                                             No.:         2019-017)
                                                   Case" (2019) No. Q0271MC5185              been                              2019
respectively.    The     two                                                                                                             published           by
                                     731   No      issued by the court, and the court has    heard, and         N/A            -06-
borrowings totaled 7.31                                                                                                                  Securities      Times,
                                                   accepted the case. At present, the case   the                               04
million yuan and haven’t                                                                                                                Hong             Kong
                                                   has not yet been heard.                   company
been repaid yet. The                                                                                                                     Commercial Daily
                                                                                             is      unable
company      submitted      a                                                                                                            and
                                                                                             to         judge
"Civil Complaint" and                                                                                                                    www.cninfo.com.c
                                                                                             the impact
related            evidence                                                                                                              n.
                                                                                             of          this
materials to the Sanya
                                                                                             lawsuit on
Suburban People's Court
                                                                                             the
(hereinafter referred to as
                                                                                             company's
the "Court").
                                                                                             current
                                                                                             profit        or
                                                                                             future
                                                                                             profit.

     Other lawsuits
     √Applicable      □ Not applicable

                                                                Amoun        Whethe                                            Execution
                                                                                                           Litigation                           Date
                                                                   t          r to      Litigation                                  of                    Discl
                                                                                                          (Arbitration)                          of
          Basic Situation of Litigation (Arbitration)           Involv        Form     (Arbitration                            Litigation                osure
                                                                                                          Trial Results                         Discl
                                                                  ed           an      ) Progress                          (Arbitratio                   Index
                                                                                                          and Impact                            osure
                                                                (Yuan)       Estimat                                                n)

                                                                         20
             司公限有份股心中游旅海东大南海                                                                          2019   文全告报度年半年
                                                                               ed                                           Judgment
                                                                             Liabilit
                                                                                y

On May 31, 2018, the Sanya Local Taxation Bureau Social
Security Fee Collection and Administration Bureau issued                                On July 7,
a notice of payment deadline for social insurance                                       2019,      the
premiums to the company's South China Hotel, ordering                                   company          At    present,
the company's South China Hotel to pay the unpaid social                                received         the case has
insurance premiums and late payment fees and interest                                   the "Notice      not       been
from January 1, 2012 to December 31, 2012 of totaling                                   of               heard,    and
286,200.36 yuan. On May 17, 2018, the Sanya Local                                       Accepting        the company
Taxation Bureau deducted the money from the deposit of                                  Cases"           is unable to
the company's South China Hotel. According to the                                       issued     by    judge      the
agreement of the "Responsibility Letter of the Target           28.62    No             the     court,   impact      of   N/A          -       -
Management of South China Hotel" signed by South                                        and        the   this lawsuit
China Hotel and Sun Hongjie, Sun Hongjie should be                                      court      has   on         the
responsible for the social insurance premium incurred                                   accepted         company's
from May 1, 2011 to April 30, 2016. The unpaid social                                   the case. At     current
insurance premium occurred during Sun Hongjie   ’   s target                           present, the     profit      or
management responsibility, and Sun Hongjie should                                       case       has   future profit.
undertake the payment. So far, Sun Hongjie has not repaid                               not        yet
the advance payment to the company's South China Hotel.                                 been heard.
To this end, the company's South China Hotel appealed to
the court.


     IX. Penalty and rectification

     □ Applicable √ Not applicable
     The Company has no penalty and rectification in the Period


     X. Integrity of the company and its controlling shareholders and actual controllers

     □ Applicable √ Not applicable


     XI. Implementation of the company’s stock incentive plan, employee stock ownership plan or
     other employee incentives

     □ Applicable √ Not applicable
     During the reporting period, the company has no stock incentive plan, employee stock ownership plan or other employee incentives
     that have not been implemented.




                                                                        21
        司公限有份股心中游旅海东大南海                                                                            2019   文全告报度年半年
XII. Major related transaction

1. Related transaction with routine operation concerned

√Applicable □Not applicable

                                                                                              Whet
                                                                                  Tradi
                                                                                               her
                                                              Relate                ng                                           Da
                                                                 d                            over
                                                                         Propo     limit                             Availab     te    Inde
                        Type     Conte                        transa                           the     Clearin
                                                    Relate                rtion
                         of       nt of   Pricin               ction              appro                 g form            le     of    x of
           Relati                                      d                    in                appro
Relate                 relate    relate     g                  amou                                       for
           onshi                                    transa               simila    ved                               similar     dis   discl
d party                   d         d     princi               nt (in                          ved      related
             p                                       ction                   r
                       transa    transa    ple                  10                (in 10               transact      market      clo   osur
                                                     price               transa               limite
                        ction     ction                       thousa                                      ion
                                                                         ctions   thousa                                 price   sur    e
                                                                nd                            d or
                                                              Yuan)                 nd                                           e
                                                                                               not
                                                                                  Yuan)
                                                                                              (Y/N)
                                                                                                                    Same
                                                                                                       Same as
                                                                                                                    as the
           First                                                                                       the
Luoniu                                                                                                              transact
           majori      Consu    Acco                                                                   transact
shan                                      Marke     Marke                                                           ion
           ty          mptio    mmod                          12.52      0.88%            0   Y        ion with
Co.,                                      t price   t price                                                         with
           shareh      n        ation                                                                  non-rel
Ltd.                                                                                                                non-rel
           older                                                                                       ated
                                                                                                                    ated
                                                                                                       party
                                                                                                                    party

Total                                       --        --      12.52        --             0       --         --           --     --     --

Detail of sales return with major amount involved                        N/A

Report the actual implementation of the daily related
transactions which were projected about their total amount by            N/A
types during the reporting period
Reasons for major differences between trading price and market
                                                                         Not applicable
reference price


2. Related transactions by assets acquisition and sold

□ Applicable      √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period


3. Related transactions of mutual investment outside

□ Applicable      √ Not applicable
No main related transactions of mutual investment outside for the Company in reporting period




                                                                    22
       司公限有份股心中游旅海东大南海                                                                     2019   文全告报度年半年
4. Contact of related credit and debt

□ Applicable      √ Not applicable
No contact of related credit or debt for the Company in the reporting period


5. Other material related transactions

□Applicable       √Not applicable
The Company has no other material related transactions in the period


XIII. Non-business capital occupying by controlling shareholders and its related parties

□ Applicable √ Not applicable
No non-business capital occupied by controlling shareholders and its related parties in Period


XIV. Major contract and implantation

1. Trusteeship, contract and leasing

(1) Trusteeship

□ Applicable √ Not applicable
The Company had no trusteeship in the reporting period.


(2) Contract

□ Applicable √ Not applicable
The Company had no contract in the reporting period.


(3) Leasing

√Applicable    □ Not applicable
Note of leasing

Item                                                         Tenant                          Lease life          Term of lease

B/F of the Hotel                           Ma Ming (Hainan Hangpai Food Co., Ltd.)            5 years     2016-01-01 to 2020-12-31

Shopping mall –B/F                                        Xu Jipeng                          3 years     2016-11-15 to 2019-11-14

A/F ground floor                                          Chen Junwei                         3 years     2016-03-01 to 2019-02-28

Seaside stall and wood house                Sanya Leda Food Management Co., Ltd.              5 years     2018-01-01 to 2022-12-31

Seaside locker room                                     Zhong Zhengao                         3 years     2016-12-01 to 2019-11-30

Multi-functional meeting room          Sanya Haolide International Travel Agency Co., Ltd.    5 years     2017-10-01 to 2022-09-30




                                                                      23
              司公限有份股心中游旅海东大南海                                                                                                  2019   文全告报度年半年
   Gains/losses to the Company from projects that reached over 10% in total profit of the Company in reporting period
   √Applicable            □ Not applicable

                                                                  Leasing                                                                              The            Whet
                                                                                                                       Leasin          Basis
                                                                   assets                                                                            impact            her
                                                                                                                         g              for                                         Asso
                                                                  involved                                                                               of            be
                                                                                                           Lease       income      determi                                          ciatio
       Name of               Name of the             Leasing       in the            Lease start                                                     leasing          relate
                                                                                                     terminatio        (in 10          ning                                           n
           lessor            leasing party            assets      amount                date                                                         income             d
                                                                                                           n date      thousa           the                                         relati
                                                                   (in 10                                                                             on the          trans
                                                                                                                         nd         leasing                                          on
                                                                  thousand                                                                           compan           actio
                                                                                                                       Yuan)       income
                                                                   Yuan)                                                                                 y             ns

       The                                          B/F
                          Ma Ming                                                 2016-01-0          2020-12-3                     Contrac
                                                    restaurant                                                                                       Increase
       Compan             (Hainan Hangpai                             1,886                                              37.8                                         No            N/A
                                                    in first                      1                  1                             t                 income
       y                  Food Co., Ltd.)
                                                    floor

       The                Sanya Leda                Seaside
                          Food                      stall and                     2018-01-0          2022-12-3                     Contrac           Increase
       Compan                                                             653                                            72.5                                         No            N/A
                          Management                wood                          1                  1                             t                 income
       y                  Co., Ltd.                 house

       The
                                                    Seaside                       2016-12-0          2019-11-3                     Contrac           Increase
       Compan             Zhong Zhengao             locker                  10                                                18                                      No            N/A
                                                                                  1                  0                             t                 income
       y                                            room

                          Sanya Haolide             Multi-fun
       The
                          International             ctional                       2017-10-0          2022-09-3                     Contrac           Increase
       Compan                                                             190                                                 15                                      No            N/A
                          Travel Agency             meeting                       1                  0                             t                 income
       y
                          Co., Ltd.                 room


   2. Major Guarantee

   □Applicable √ Not applicable
   The Company had no guarantee in the reporting period.


   3. Other material contracts

   √Applicable            □ Not applicable

                                                         The        The          N
                                                                                                              Trans
                                                        book      assesse        a                                     Whet                     The
  The               The                                                                                        actio
                                             Date       value        d           m       The                            her                     perfo
name of             name                                                                                        n                  Relev
                                Contr         of        of the    value of       e      base       Prici               Relat                    rman          Date         Index
  the               of the                                                                                    price                ance
                                 act       contr        assets      the          of      date       ng                   ed                     ce by          of            of
contract        contract                                                                                        (in                relati
                                objec        act       involve     assets        ev      eval      Princ               Trans                     the          discl         discl
  ing                ed                                                                                         10                 onshi
                                   t       signi       d in the   involve        al      uati      iple                 actio                    end          osure        osure
compan          compan                                                                                        thous                    p
                                             ng        contrac    d in the       ua      on                             ns or                   of the
   y                  y                                                                                        and
                                                        t(in 10   contract       tio                                    not                     term
                                                                                                              yuan)
                                                       thousan     (in 10        n

                                                                                         24
            司公限有份股心中游旅海东大南海                                                                         2019   文全告报度年半年
                                           d yuan)    thousan     in
                                                      d yuan)     sti
                                                                  tut
                                                                  io
                                                                  n


                          Deco
Hainan                                                                                                              The
                          ration
Dadong                                                                                                                pro
              Haikou      proje
hai           Xindec                                                                                                  jec
              heng        ct of                                                                           Non-
Tourism                                                                                                               t
              Constru     the                                                                             correl
Centre        ction                                                              Mark                                 pro
              and         Build    2019-                          N/                                      ative
(Holdin                                           -           -         -        et       890    No                   cee     -      -
              Installat   ing-A    05-10                          A                                       relati
gs) Co.,      ion                                                                price                                din
              Engine      of                                                                              onshi
Ltd                                                                                                                   g
              ering       South                                                                           p
South         Co.,                                                                                                    nor
              Ltd.        Chin
China                                                                                                                 ma
                          a
Hotel                                                                                                                 lly
                          Hotel


      Note: The contract does not constitute a major contract matter. The 4th meeting of the Ninth Board of Directors of the Company
      reviewed and approved the “Proposal on the decoration and renovation of the Building A of the South China Hotel”. At the same
      time, the board of directors has authorized the company to handle matters including, but not limited to, bidding for the matter and
      signing of relevant contracts.


      XV. Social responsibility

      1. Major environmental protection

      Listed company and its subsidiary belong to the key pollution enterprise listed by Department of Environmental Protection: No


      2. Execution of social responsibility of targeted poverty alleviation: Nil

      XVI. Explanation on other significant events

      √Applicable □ Not applicable
      1. The Lawyer’s Letter received by the Company: by preliminary accounting from Sanya Power Bureau, the 10313373 Kwh
      electricity was understated under the name of South China Hotel from July 2006 to April 2016. The Company is communicated and
      negotiates with Sanya Power Bureau in the above mentioned event without negotiation results so far.

      2. The company received the Lawyer’s Letter: Main contents of the Lawyer’s Letter: the financial loan dispute between the
      company’s joint stock company, Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. (hereinafter referred to as “Dadonghai
      Holdings”), and its original creditor, China Construction Bank Sanya Branch (hereinafter referred to as “CCB Sanya Branch”), its
      new creditor China Cinda Asset Management Co., Ltd. Hainan Branch (hereinafter referred to as “Hainan Cinda”) currently makes
      the right to recover, the two debts include: (1) the principal of 1.1 million Yuan and interest of 5,598,300 Yuan temporarily calculated
      to April 30, 2018, totaling 6,698,300 Yuan, and Hainan Cinda is reported to have dropped the case. (2)the principal of 5 million Yuan

                                                                            25
      司公限有份股心中游旅海东大南海                                                                   2019   文全告报度年半年
and interest of 29,311,700 Yuan temporarily calculated to April 30, 2018, totaling 34,311,700 Yuan. If Dadonghai Holdings is
incapable of handling the liquidation, Hainan Cinda will claim that the company should be jointly and severally liable for the above
debts of Dadonghai Holdings. During the reporting period, the first instance ruling rejected Hainan Cinda’s claim and the final
judgment of the second instance shall be upheld by the judgment of the first instance.


XVII. Significant event of subsidiary of the Company

□Applicable √ Not applicable




                                                                  26
      司公限有份股心中游旅海东大南海                                                                2019   文全告报度年半年

    Section VI. Particulars about Changes in Shares and Shareholders

I. Changes in Share Capital

1. Changes in Share Capital

                                                                                                                       In Share

                                                            Increase/Decrease in the Change
                                    Before the Change                                               After the Change
                                                                            (+, -)

                                                                       B
                                                                       o
                                                                       n    Capital         S
                                                            New        u    ization   Ot    u
                                                Proportio
                                   Amount                   shares     s       of     her   bt   Amount          Proportion
                                                   n
                                                            issued     s     public    s    ot
                                                                       h    reserve         al
                                                                       ar
                                                                       es

 I. Restricted shares              10,454,400     2.87%                                0    0     10,454,400            2.87%


 1. State-owned shares

 2. State-owned corporate
                                    2,323,200     0.64%                                0    0      2,323,200            0.64%
 shares

                                    8,131,200     2.23%                                0    0      8,131,200            2.23%
 3. Other domestic shares
 Including: Domestic
                                    7,900,200     2.17%                                0    0      7,900,200            2.17%
 legal person shares

 Domestic natural person
                                     231,000      0.06%                                0    0       231,000             0.06%
 shares

 II. Unrestricted shares          353,645,600    97.13%                                0    0    353,645,600           97.13%

                                  265,645,600    72.96%                                0    0    265,645,600           72.96%
 1. RMB common shares

 2.Domestically         listed
                                   88,000,000    24.17%                                0    0     88,000,000           24.17%
 foreign shares
 III. Total shares                364,100,000   100.00%                                0    0    364,100,000        100.00%

Reasons for share changed
□ Applicable √ Not applicable
Approval of share changed
□ Applicable √ Not applicable

                                                                  27
      司公限有份股心中游旅海东大南海                                                                      2019    文全告报度年半年
Ownership transfer of share changes
□ Applicable √ Not applicable
Implementation progress of the share repurchases
□ Applicable √ Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable


2. Changes of restricted shares

□ Applicable √ Not applicable


II. Securities issuance and listing

□ Applicable √ Not applicable


III. Amount of shareholders of the Company and particulars about shares holding

                                                                                                                              In Share

 Total common stock
                                             Total preference shareholders with voting rights recovered at end of
 shareholders in reporting         36,595                                                                                                       0
                                             reporting period
 period-end

                      Particulars about common shares held above 5% by shareholders or top ten common shareholders

                                                                                                                                    Number of
                                                                                                                                      share
                                                                      Number of                     Amount                          pledged/fr
                                                           Proporti    common        Changes           of           Amount of            ozen
                                          Nature of          on of
     Full name of Shareholders                                        shares held       in report   restricted      un-restricted               A
                                         shareholder        shares
                                                             held          at            period      shares         shares held     State       m
                                                                      period-end                      held                           of         o
                                                                                                                                    share       u
                                                                                                                                                nt

                                                                                                                                                6
                                      Domestic non                                                                                              3,
                                                                                                                                    Pled
 Luoniushan Co., Ltd.                 state-owned          17.55%     63,885,980    0                         0       63,885,980                8
                                                                                                                                    ged
                                      corporate                                                                                                 8
                                                                                                                                                5,



                                                                 28
      司公限有份股心中游旅海东大南海                                                                     2019      文全告报度年半年
                                                                                                                                           9
                                                                                                                                           8
                                                                                                                                           0

                                      Domestic nature
 Yang Meiqin                                                 4.47%         16,279,028   0                      0      16,279,028
                                      person

                                      Domestic nature
 Pan Anjie                                                   4.01%         14,593,598   0                      0      14,593,598
                                      person

                                      Domestic non
Hainan Ya’an Residence Property
                                      state-owned            2.25%          8,205,800   0                      0       8,205,800
Service Co., Ltd.
                                      corporate

                                      Domestic nature
 Chen Jinlian                                                2.13%          7,766,400   0                      0       7,766,400
                                      person

 HGNH International Asset
 Management Co., Ltd –               Foreign corporate      1.23%          4,495,902   0                      0       4,495,902
 customer deposit

                                      Domestic nature
 Pan Aiping                                                  1.13%          4,110,738   0                      0       4,110,738
                                      person

 China Investment Securities
 (HK) Co., Ld. – customer            Foreign corporate      0.99%          3,622,300   0                      0       3,622,300
 deposit

                                      Domestic nature
 Zhang Fengxiu                                               0.90%          3,291,372   -610000                0       3,291,372
                                      person

 Shenwan Hongyuan Securities
                                      Foreign corporate      0.84%          3,056,390   0                      0       3,056,390
 (Hong Kong) Co., Ltd.

 Strategy investors or general legal person becomes top
                                                           N/A
 10 common shareholders due to rights issued

                                                           Among the above shareholders, Hainan Ya’an Residence Property Service Co.,
                                                           Ltd. is the wholly-owned subsidiary of Luoniushan Co., Ltd; Yang Meiqin, Pan
                                                           Anjie, Chen Jinlian and Pan Aiping are the persons acting in concert; the
 Explanation on associated relationship or accordant
                                                           Company is unknown whether there exists associated relationship or belongs to
 action among the aforesaid shareholders
                                                           the consistent actor regulated by the Management Measure of Information
                                                           Disclosure on Change of Shareholding for Listed Company among the other
                                                           shareholders.

                                   Particular about top ten shareholders with un-restrict common shares held

                                                              Amount of                               Type of shares
                                                              un-restrict
                    Shareholders’ name                    common shares
                                                                                         Type                           Amount
                                                                 held at
                                                              Period-end

 Luoniushan Co., Ltd.                                            63,885,980      RMB common share                                  63,885,980

                                                                  29
       司公限有份股心中游旅海东大南海                                                                  2019   文全告报度年半年
                                                          16,279,0       Domestically listed foreign
 Yang Meiqin                                                                                                                16,279,028
                                                                 28      share

                                                          14,593,5       Domestically listed foreign
 Pan Anjie                                                                                                                  14,593,598
                                                                 98      share

                                                          8,205,80
 Hainan Ya’an Residence Property Service Co., Ltd.                      RMB common share                                    8,205,800
                                                                  0

                                                          7,766,40       Domestically listed foreign
 Chen Jinlian                                                                                                                7,766,400
                                                                  0      share

 HGNH International Asset Management Co., Ltd –          4,495,90
                                                                         RMB common share                                    4,495,902
 customer deposit                                                 2

                                                          4,110,73       Domestically listed foreign
 Pan Aiping                                                                                                                  4,110,738
                                                                  8      share

 China Investment Securities (HK) Co., Ld. – customer    3,622,30
                                                                         RMB common share                                    3,622,300
 deposit                                                          0

                                                          3,291,37
 Zhang Fengxiu                                                           RMB common share                                    3,291,372
                                                                  2

                                                          3,056,39       Domestically listed foreign
 Shenwan Hongyuan Securities (Hong Kong) Co., Ltd.                                                                           3,056,390
                                                                  0      share

                                                          Among the above shareholders, Hainan Ya’an Residence Property Service Co.,
 Expiation on associated relationship or consistent       Ltd. is the wholly-owned subsidiary of Luoniushan Co., Ltd. Yang Meiqin, Pan
 actors within the top 10 un-restrict common stock        Anjie, Chen Jinlian and Pan Aiping are the persons acting in concert; the
 shareholders and between top 10 un-restrict common       Company is unknown whether there exists associated relationship or belongs to
 stock shareholders and top 10 common stock               the consistent actor regulated by the Management Measure of Information
 shareholders                                             Disclosure on Change of Shareholding for Listed Company among the other
                                                          shareholders.

 Explanation on shareholders involving margin
 business about top ten common stock shareholders         N/A
 with un-restrict shares held

Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-back
agreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have no
buy-back agreement dealing in reporting period.


IV. Changes of controlling shareholders or actual controller

Changes of controlling shareholders in reporting period
□ Applicable √ Not applicable
Changes of controlling shareholders had no change in reporting period.
Changes of actual controller in reporting period


                                                                30
      司公限有份股心中游旅海东大南海                                                  2019   文全告报度年半年
□ Applicable √ Not applicable
Changes of actual controller in reporting period had no change in reporting period.




                                                                 31
      司公限有份股心中游旅海东大南海                                 2019   文全告报度年半年

                                      Section VII. Preferred Stock

□ Applicable   √ Not applicable
The Company had no preferred stock in the Period.




                                                    32
      司公限有份股心中游旅海东大南海                                                                    2019   文全告报度年半年

        Section VIII. Particulars about Directors, Supervisors, Senior

                                         Executives and Employees

I. Changes of shares held by directors, supervisors and senior executives

□ Applicable √ Not applicable
No change of shares held by directors, supervisors and senior executives, found more details in Annual Report 2018.


II. Changes of directors, supervisors and senior executives

□ Applicable √ Not applicable
No changes of directors, supervisors and senior executives, found more details in Annual Report 2018.




                                                                33
      司公限有份股心中游旅海东大南海                                                                2019   文全告报度年半年

                                         Section IX. Corporate Bond

Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date when
semi-annual report approved for released or fail to cash in full on due
No




                                                                   34
       司公限有份股心中游旅海东大南海                                                        2019   文全告报度年半年

                                          Section X. Financial Report

I. Audit report

Whether the semi annual report is audited
□ Yes √ No
The company's semi annual financial report has not been audited.


II. Financial Statement

Expressed in Renminbi unless otherwise stated


1. Balance sheet


Prepared by HAINAN DADONGHAI Tourism Centre (HOLDINGS) CO., LTD.
                                                                                                               In RMB

                                          Item                                   2019-6-30            2018-12-31

 Current assets:

      Monetary funds                                                             16,110,895.95          15,364,355.30

      Settlement provisions

      Capital lent

      Transactional financial assets

      Financial assets measured by fair value and with variation reckoned into
 current gains/losses

      Derivative financial assets

      Note receivable

      Account receivable                                                            155,986.88             426,434.87

      Receivable financing

      Accounts paid in advance                                                      396,882.60

      Insurance receivable

      Reinsurance receivables

      Contract reserve of reinsurance receivable

      Other account receivable                                                    1,242,181.64             458,242.73

         Including: Interest receivable

                   Dividend receivable

      Buying back the sale of financial assets


                                                                   35
     司公限有份股心中游旅海东大南海                           2019   文全告报度年半年
     Inventories                                    191,693.57              221,390.19

      Contractual assets

     Assets held for sale

     Non-current asset due within one year

     Other current assets                          2,125,619.16           1,846,219.79

Total current assets                              20,223,259.80          18,316,642.88

Non-current assets:

     Loans and payments on behalf

     Debt investment

     Finance asset available for sales

     Other debt investment

     Held-to-maturity investment

     Long-term account receivable

     Long-term equity investment

     Investment in other equity instrument

     Other non-current financial assets

     Investment real estate                        8,147,218.65           8,384,480.43

     Fixed assets                                 34,997,520.16          36,497,869.65

     Construction in progress

     Productive biological asset

     Oil and gas asset

      Right-of-use assets

     Intangible assets                            21,799,055.46          22,205,249.04

     Expense on Research and Development

     Goodwill

     Long-term expenses to be apportioned          2,240,879.25           2,792,876.07

     Deferred income tax asset

     Other non-current asset

Total non-current asset                           67,184,673.52          69,880,475.19

Total assets                                      87,407,933.32          88,197,118.07

Current liabilities:

     Short-term loans

     Loan from central bank

     Capital borrowed


                                             36
     司公限有份股心中游旅海东大南海                                                           2019   文全告报度年半年
     Transactional financial liability

     Financial liability measured by fair value and with variation reckoned into
current gains/losses

     Derivative financial liability

     Note payable
     Account payable                                                               1,077,017.43           1,607,835.81

     Accounts received in advance                                                   779,681.12            1,291,293.05

     Selling financial asset of repurchase

     Absorbing deposit and interbank deposit

     Security trading of agency

     Security sales of agency

     Wage payable                                                                  1,827,967.06           2,841,262.35

     Taxes payable                                                                  745,943.66              450,861.87

     Other account payable                                                         2,942,968.71           2,727,483.66

        Including: Interest payable

                    Dividend payable

     Commission charge and commission payable

     Reinsurance payable

      Contractual liability

     Liability held for sale

     Non-current liabilities due within one year

     Other current liabilities

Total current liabilities                                                          7,373,577.98           8,918,736.74

Non-current liabilities:

     Insurance contract reserve
     Long-term loans

     Bonds payable

        Including: Preferred stock

                    Perpetual capital securities

      Lease liability

     Long-term account payable

     Long-term wages payable

     Accrual liability                                                             1,489,685.04           1,489,685.04

     Deferred income

     Deferred income tax liabilities


                                                                37
      司公限有份股心中游旅海东大南海                                                                  2019   文全告报度年半年
      Other non-current liabilities

 Total non-current liabilities                                                           1,489,685.04              1,489,685.04

 Total liabilities                                                                       8,863,263.02            10,408,421.78

 Owner’s equity:

      Share capital                                                                   364,100,000.00            364,100,000.00

      Other equity instrument

         Including: Preferred stock

                      Perpetual capital securities

      Capital public reserve                                                           54,142,850.01             54,142,850.01

      Less: Inventory shares

      Other comprehensive income

      Reasonable reserve

      Surplus public reserve

      Provision of general risk

      Retained profit                                                                 -339,698,179.71           -340,454,153.72

 Total owner’ s equity attributable to parent company                                 78,544,670.30             77,788,696.29

      Minority interests

 Total owner’ s equity                                                                78,544,670.30             77,788,696.29

 Total liabilities and owner’ s equity                                                87,407,933.32             88,197,118.07


Legal Representative: Yuan Xiaoping                         Accounting Principal:Fu Zongren


Accounting Firm’s Principal: Fu Zongren


2. Balance sheet of parent company

                                                                                                                         In RMB

                                           Item                                         2019-6-30               2018-12-31

 Current assets:

      Monetary funds                                                                    15,610,097.59            14,864,055.73

      Transactional financial assets

      Financial assets measured by fair value and with variation reckoned into
 current gains/losses

      Derivative financial assets

      Note receivable

      Account receivable                                                                      155,986.88            426,434.87


                                                                38
     司公限有份股心中游旅海东大南海                                2019   文全告报度年半年
     Receivable financing

     Accounts paid in advance                             396,882.60

     Other account receivable                            1,242,181.64            458,242.73

       Including: Interest receivable

                    Dividend receivable

     Inventories                                          191,693.57             221,390.19

     Contractual assets

     Assets held for sale

     Non-current assets maturing within one year

     Other current assets                                2,125,619.16          1,846,219.79

Total current assets                                    19,722,461.44         17,816,343.31

Non-current assets:

     Debt investment

     Available-for-sale financial assets

     Other debt investment

     Held-to-maturity investments

     Long-term receivables

     Long-term equity investments                        1,000,000.00          1,000,000.00

     Investment in other equity instrument

     Other non-current financial assets

     Investment real estate                              8,147,218.65          8,384,480.43

     Fixed assets                                       34,997,520.16         36,497,869.65

     Construction in progress

     Productive biological assets

     Oil and natural gas assets

     Right-of-use assets

      Intangible assets                                 21,799,055.46         22,205,249.04

     Research and development costs

     Goodwill

     Long-term deferred expenses                         2,240,879.25          2,792,876.07

     Deferred income tax assets

     Other non-current assets

Total non-current assets                                68,184,673.52         70,880,475.19

Total assets                                            87,907,134.96         88,696,818.50


                                                   39
     司公限有份股心中游旅海东大南海                                                          2019   文全告报度年半年
Current liabilities

     Short-term borrowings

     Transactional financial liability

     Financial liability measured by fair value and with variation reckoned into
current gains/losses

     Derivative financial liability

     Notes payable

     Account payable                                                               1,077,017.43          1,607,835.81

     Accounts received in advance                                                   779,681.12           1,291,293.05

     Contractual liability

     Wage payable                                                                  1,827,967.06          2,841,262.35

     Taxes payable                                                                  745,943.66             450,861.87

     Other accounts payable                                                        3,442,669.14          3,226,952.36

        Including: Interest payable

                Dividend payable

     Liability held for sale

     Non-current liabilities due within one year

     Other current liabilities

Total current liabilities                                                          7,873,278.41          9,418,205.44

Non-current liabilities:

     Long-term loans

     Bonds payable

        Including: preferred stock

                Perpetual capital securities

     Lease liability

     Long-term account payable

     Long term employee compensation payable

     Accrued liabilities                                                           1,489,685.04          1,489,685.04

     Deferred income

     Deferred income tax liabilities

     Other non-current liabilities

Total non-current liabilities                                                      1,489,685.04          1,489,685.04

Total liabilities                                                                  9,362,963.45         10,907,890.48

Owners’ equity:



                                                                40
      司公限有份股心中游旅海东大南海                                                 2019   文全告报度年半年
      Share capital                                                  364,100,000.00            364,100,000.00

      Other equity instrument

        Including: preferred stock

                Perpetual capital securities

      Capital public reserve                                          54,142,850.01             54,142,850.01

      Less: Inventory shares

      Other comprehensive income

      Special reserve

      Surplus reserve

      Retained profit                                               -339,698,678.50            -340,453,921.99

 Total owner’s equity                                                78,544,171.51             77,788,928.02

 Total liabilities and owner’s equity                                87,907,134.96             88,696,818.50


3. Consolidated profit statement

                                                                                                        In RMB

                                                                    Semi-annual of
                                         Item                                           Semi-annual of 2018
                                                                        2019

 I. Total operating income                                            14,241,961.04             16,173,929.32

      Including: Operating income                                     14,241,961.04             16,173,929.32

              Interest income

              Insurance gained

              Commission charge and commission income

 II. Total operating cost                                             13,646,017.49             14,891,558.76

      Including: Operating cost                                        5,514,477.93               6,000,063.36

              Interest expense

              Commission charge and commission expense

      Cash surrender value

      Net amount of expense of compensation

      Net amount of withdrawal of insurance contract reserve

      Bonus expense of guarantee slip

              Reinsurance expense

              Tax and extras                                             383,479.50                716,520.90

              Sales expense                                            2,809,991.94               2,800,956.10

              Administrative expense                                   5,071,800.21               5,356,455.21



                                                               41
     司公限有份股心中游旅海东大南海                                                        2019   文全告报度年半年
              R&D expense

              Financial expense                                                   -133,732.09             17,563.19

                Including: Interest expenses

                             Interest income                                      152,697.12              22,729.87

     Add: other income

           Investment income (Loss is listed with “-”)

           Including: Investment income on affiliated company and joint venture

                The termination of income recognition for financial assets
measured by amortized cost(Loss is listed with “-”)
           Exchange income (Loss is listed with “-”)

           Net exposure hedging income (Loss is listed with “-”)

           Income from change of fair value (Loss is listed with “-”)

           Loss of credit impairment (Loss is listed with “-”)
           Losses of devaluation of asset (Loss is listed with “-”)

           Income from assets disposal (Loss is listed with “-”)

III. Operating profit (Loss is listed with “-”)                                 595,943.55           1,282,370.56

     Add: Non-operating income                                                    160,030.46                273.00

     Less: Non-operating expense                                                                            477.98

IV. Total profit (Loss is listed with “-”)                                      755,974.01           1,282,165.58

     Less: Income tax expense

V. Net profit (Net loss is listed with “-”)                                     755,974.01           1,282,165.58

  (i) Classify by business continuity

     1.continuous operating net profit (net loss listed with ‘-”)               755,974.01           1,282,165.58

     2.termination of net profit (net loss listed with ‘-”)

  (ii) Classify by ownership

     1.Net profit attributable to owner’s of parent company                      755,974.01           1,282,165.58

     2.Minority shareholders’ gains and losses

VI. Net after-tax of other comprehensive income

  Net after-tax of other comprehensive income attributable to owners of parent
company

     (I) Other comprehensive income items which will not be reclassified
subsequently to profit of loss

              1.Changes of the defined benefit plans that re-measured

              2.Other comprehensive income under equity method that cannot be
transfer to gain/loss



                                                                        42
      司公限有份股心中游旅海东大南海                                                                        2019   文全告报度年半年
                3.Change of fair value of investment in other equity instrument

                4.Fair value change of enterprise's credit risk

                5. Other

       (ii) Other comprehensive income items which will be reclassified
 subsequently to profit or loss

                1.Other comprehensive income under equity method that can transfer
 to gain/loss

                2.Change of fair value of other debt investment

                3.gain/loss of fair value changes for available-for-sale financial assets

                4.Amount of financial assets re-classify to other comprehensive
 income

                5.Gain/loss of held-to-maturity investments that re-classify to
 available-for-sale financial asset

                6.Credit impairment provision for other debt investment

                7.Cash flow hedging reserve

                8.Translation differences arising on translation of foreign currency
 financial statements

                9.Other

   Net after-tax of other comprehensive income attributable to minority
 shareholders

 VII. Total comprehensive income                                                                    755,974.01           1,282,165.58

          Total comprehensive income attributable to owners of parent Company                       755,974.01           1,282,165.58

      Total comprehensive income attributable to minority shareholders

 VIII. Earnings per share:

       (i) Basic earnings per share                                                                    0.0021                   0.0035

      (ii) Diluted earnings per share                                                                  0.0021                   0.0035

As for the enterprise combination under the same control, the net profit achieved by the combined party before consolidation was 0
Yuan in the period while 0 Yuan achieved last period


Legal Representative: Yuan Xiaoping                               Accounting Principal:Fu Zongren


Accounting Firm’s Principal: Fu Zongren


4. Profit statement of parent Company

                                                                                                                                In RMB

                                                                                            Semi-annual of           Semi-annual of
                                           Item
                                                                                                    2019                 2018


                                                                      43
     司公限有份股心中游旅海东大南海                                                         2019   文全告报度年半年
I. Operating income                                                               14,241,961.04        16,173,929.32

     Less: Operating cost                                                         13,645,516.28        14,891,558.76

           Taxes and surcharge                                                      383,479.50            716,520.90

           Sales expenses                                                          2,809,991.94         2,800,956.10

           Administration expenses                                                 5,071,800.21         5,356,455.21

           R&D expenses

           Financial expenses                                                       -133,233.30            17,563.19

                 Including: interest expenses

                         Interest income                                            151,938.33             22,729.87

     Add: other income

           Investment income (Loss is listed with “-”)

           Including: Investment income on affiliated Company and joint venture

                 The termination of income recognition for financial assets
measured by amortized cost (Loss is listed with “-”)

           Net exposure hedging income (Loss is listed with “-”)

           Changing income of fair value (Loss is listed with “-”)

           Loss of credit impairment (Loss is listed with “-”)
           Losses of devaluation of asset (Loss is listed with “-”)

           Income on disposal of assets (Loss is listed with “-”)

II. Operating profit (Loss is listed with “-”)                                    595,444.76          1,282,370.56

     Add: Non-operating income                                                      160,030.46               273.00

     Less: Non-operating expense                                                                             477.98

III. Total Profit (Loss is listed with “-”)                                       755,475.22          1,282,165.58

     Less: Income tax

IV. Net profit (Net loss is listed with “-”)                                      755,475.22          1,282,165.58

     (i)continuous operating net profit (net loss listed with ‘-”)                755,475.22          1,282,165.58

     (ii) termination of net profit (net loss listed with ‘-”)

V. Net after-tax of other comprehensive income

     (I) Other comprehensive income items which will not be reclassified
subsequently to profit of loss

              1.Changes of the defined benefit plans that re-measured

              2.Other comprehensive income under equity method that cannot be
transfer to gain/loss

              3.Change of fair value of investment in other equity instrument

              4.Fair value change of enterprise's credit risk



                                                                        44
      司公限有份股心中游旅海东大南海                                                                2019   文全告报度年半年
                5. Other

       (II) Other comprehensive income items which will be reclassified
 subsequently to profit or loss

                1.Other comprehensive income under equity method that can transfer
 to gain/loss

                2.Change of fair value of other debt investment

                3.gain/loss of fair value changes for available-for-sale financial assets

                4.Amount of financial assets re-classify to other comprehensive
 income

                5.Gain/loss of held-to-maturity investments that re-classify to
 available-for-sale financial asset

                6.Credit impairment provision for other debt investment

                7.Cash flow hedging reserve

                8.Translation differences arising on translation of foreign currency
 financial statements

                9.Other

 VI. Total comprehensive income                                                             755,475.22          1,282,165.58

 VII. Earnings per share:

       (i) Basic earnings per share                                                             0.0021                0.0035

      (ii) Diluted earnings per share                                                           0.0021                0.0035


5. Consolidated cash flow statement

                                                                                                                       In RMB

                                                                                            Semi-annual of    Semi-annual of
                                                Item
                                                                                                2019              2018

 I. Cash flows arising from operating activities:

      Cash received from selling commodities and providing labor services                    14,988,120.25     17,460,137.72

      Net increase of customer deposit and interbank deposit

       Net increase of loan from central bank

      Net increase of capital borrowed from other financial institution

      Cash received from original insurance contract fee

      Net cash received from reinsurance business

      Net increase of insured savings and investment

      Cash received from interest, commission charge and commission

      Net increase of capital borrowed



                                                                      45
     司公限有份股心中游旅海东大南海                                                           2019   文全告报度年半年
     Net increase of returned business capital

     Net cash received by agents in sale and purchase of securities

     Write-back of tax received

     Other cash received concerning operating activities                                1,105,441.88        684,152.64

Subtotal of cash inflow arising from operating activities                              16,093,562.13     18,144,290.36

     Cash paid for purchasing commodities and receiving labor service                   4,468,726.47      5,026,699.13

     Net increase of customer loans and advances

     Net increase of deposits in central bank and interbank

     Cash paid for original insurance contract compensation

     Net increase of financial assets held for transaction purposes

     Net increase of capital lent

     Cash paid for interest, commission charge and commission

      Cash paid for bonus of guarantee slip

     Cash paid to/for staff and workers                                                 6,921,639.62      6,741,602.32

     Taxes paid                                                                         1,139,283.59      1,590,739.15

     Other cash paid concerning operating activities                                    2,294,495.80      1,674,572.16

Subtotal of cash outflow arising from operating activities                             14,824,145.48     15,033,612.76

Net cash flows arising from operating activities                                        1,269,416.65      3,110,677.60

II. Cash flows arising from investing activities:

     Cash received from recovering investment

     Cash received from investment income

     Net cash received from disposal of fixed, intangible and other long-term assets      68,670.00

     Net cash received from disposal of subsidiaries and other units

     Other cash received concerning investing activities

Subtotal of cash inflow from investing activities                                         68,670.00

     Cash paid for purchasing fixed, intangible and other long-term assets               591,546.00       1,040,626.12

     Cash paid for investment

     Net increase of mortgaged loans

     Net cash received from subsidiaries and other units obtained

     Other cash paid concerning investing activities

Subtotal of cash outflow from investing activities                                       591,546.00       1,040,626.12

Net cash flows arising from investing activities                                         -522,876.00      -1,040,626.12

III. Cash flows arising from financing activities

     Cash received from absorbing investment


                                                                 46
      司公限有份股心中游旅海东大南海                                                               2019   文全告报度年半年
       Including: Cash received from absorbing minority shareholders’ investment by
 subsidiaries

      Cash received from loans

      Cash received from issuing bonds

      Other cash received concerning financing activities

 Subtotal of cash inflow from financing activities

      Cash paid for settling debts

      Cash paid for dividend and profit distributing or interest paying

      Including: Dividend and profit of minority shareholder paid by subsidiaries

      Other cash paid concerning financing activities

 Subtotal of cash outflow from financing activities

 Net cash flows arising from financing activities

 IV. Influence on cash and cash equivalents due to fluctuation in exchange rate

 V. Net increase of cash and cash equivalents                                                 746,540.65        2,070,051.48

      Add: Balance of cash and cash equivalents at the period -begin                        15,364,355.30       9,681,607.16

 VI. Balance of cash and cash equivalents at the period -end                                16,110,895.95     11,751,658.64


6. Cash flow statement of parent Company

                                                                                                                       In RMB

                                                                                       Semi-annual of       Semi-annual of
                                           Item
                                                                                           2019                 2018

 I. Cash flows arising from operating activities:

      Cash received from selling commodities and providing labor services                14,988,120.25        17,460,137.72

      Write-back of tax received

      Other cash received concerning operating activities                                 1,104,683.09           684,152.64

 Subtotal of cash inflow arising from operating activities                               16,092,803.34        18,144,290.36

      Cash paid for purchasing commodities and receiving labor service                    4,468,726.47          5,026,699.13

      Cash paid to/for staff and workers                                                  6,921,639.62          6,741,602.32

      Taxes paid                                                                          1,139,261.99          1,590,739.15

      Other cash paid concerning operating activities                                     2,294,257.40          1,674,572.16

 Subtotal of cash outflow arising from operating activities                              14,823,885.48        15,033,612.76

 Net cash flows arising from operating activities                                         1,268,917.86          3,110,677.60

 II. Cash flows arising from investing activities:

      Cash received from recovering investment



                                                                  47
             司公限有份股心中游旅海东大南海                                                                2019   文全告报度年半年
             Cash received from investment income

             Net cash received from disposal of fixed, intangible and other long-term assets        68,670.00

             Net cash received from disposal of subsidiaries and other units

             Other cash received concerning investing activities

        Subtotal of cash inflow from investing activities                                           68,670.00

             Cash paid for purchasing fixed, intangible and other long-term assets                 591,546.00             1,040,626.12

             Cash paid for investment                                                                                     1,000,000.00

             Net cash received from subsidiaries and other units obtained

             Other cash paid concerning investing activities

        Subtotal of cash outflow from investing activities                                         591,546.00             2,040,626.12

        Net cash flows arising from investing activities                                           -522,876.00           -2,040,626.12

        III. Cash flows arising from financing activities

             Cash received from absorbing investment

             Cash received from loans

             Cash received from issuing bonds

             Other cash received concerning financing activities

        Subtotal of cash inflow from financing activities

             Cash paid for settling debts

             Cash paid for dividend and profit distributing or interest paying

             Other cash paid concerning financing activities

        Subtotal of cash outflow from financing activities

        Net cash flows arising from financing activities

        IV. Influence on cash and cash equivalents due to fluctuation in exchange rate

        V. Net increase of cash and cash equivalents                                               746,041.86             1,070,051.48

             Add: Balance of cash and cash equivalents at the period -begin                      14,864,055.73            9,681,607.16

        VI. Balance of cash and cash equivalents at the period -end                              15,610,097.59           10,751,658.64


       7. Consolidate change of owners’ equity

       Current period
                                                                                                                                In RMB

                           Semi-annual of 2019
                                                                                                             Minority           Total    owners’
                           Owners’ equity attributable to the parent Company
Item                                                                                                         interests          equity
                                               Other                                                      o
                                                            Capital         L O R S P
                           Share capital       equity                                 Retained profit     t Subtotal
                                                            reserve         e t e u r
                                               instru                                                     h


                                                                         48
              司公限有份股心中游旅海东大南海                                                                  2019   文全告报度年半年
                                              ment                        s h a r   o                     e
                                                P                         s e s p   v                     r
                                                e                         : r o l   i
                                                r                             n u   s
                                                p                         I c a s   i
                                                e                         n o b     o
                                                t                         v m l r   n
                                                u                         e p e e
                                              P
                                                a                         n r   s   o
                                              r
                                                l                         t e r e   f
                                              e
                                                                          o h e r
                                              f
                                                c                         r e s v   g
                                              e
                                                a                         y n e e   e
                                              r
                                                p    O                      s r     n
                                              r
                                                i    t                    s i v     e
                                              e
                                                t    h                    h v e     r
                                              d
                                                a    e                    a e       a
                                                l    r                    r         l
                                              s
                                                                          e i
                                              t
                                                s                         s n       r
                                              o
                                                e                           c       i
                                              c
                                                c                           o       s
                                              k
                                                u                           m       k
                                                r                           e
                                                i
                                                t
                                                i
                                                e
                                                s

I. Balance at the end of
                             364,100,000.00              54,142,850.01                  -340,454,153.72        77,788,696.29       77,788,696.29
the last year
      Add: Changes of
accounting policy
                 Error
correction of the last
period
              Enterprise
 combine under the
 same control
      Other
II. Balance at the
                             364,100,000.00              54,142,850.01                  -340,454,153.72        77,788,696.29       77,788,696.29
beginning of this year
III. Increase/ Decrease in
this year (Decrease is                                                                  755,974.01             755,974.01          755,974.01
listed with “-”)
 (i) Total comprehensive
                                                                                        755,974.01             755,974.01          755,974.01
income
 (ii) Owners’ devoted
and decreased capital
1.Common          shares
invested by shareholders


                                                                         49
                司公限有份股心中游旅海东大南海                                                                2019   文全告报度年半年
2. Capital invested by
holders of other equity
instruments
3. Amount reckoned into
owners    equity    with
share-based payment
4. Other
(III) Profit distribution
1. Withdrawal of surplus
reserves
2. Withdrawal of general
risk provisions
3.     Distribution      for
owners (or shareholders)
4. Other
(IV) Carrying forward
internal owners’ equity
1.    Capital     reserves
conversed to capital
(share capital)
2.    Surplus     reserves
conversed to capital
(share capital)
3. Remedying loss with
surplus reserve
4 Carry-over retained
 .
   earnings from the
   defined benefit plans
5 Carry-over retained
 .
earnings from other
comprehensive income
6. Other
(V) Reasonable reserve
1. Withdrawal in the
report period

2. Usage in the report
period
(VI)Others
IV. Balance at the end of
                                364,100,000.00            54,142,850.01                     -339,698,179.71    78,544,670.30        78,544,670.30
the report period
         Last Period
                                                                                                                                In RMB

                               Semi-annual of 2018
                                                                                                                               M
                                                                                                                               in
                                                                                                                               or
Item                                                                                                                                Total owners’
                                                     Owners’ equity attributable to the parent Company                        it
                                                                                                                                    equity
                                                                                                                               y
                                                                                                                               in
                                                                                                                               te

                                                                          50
              司公限有份股心中游旅海东大南海                                                           2019   文全告报度年半年
                                                                                                                        re
                                                                                                                        st
                                                                                                                        s


                                            Other
                                            equity
                                            instru
                                                                     O
                                            ment
                                                                     t       P
                                                P
                                                                     h       r
                                                e                  L
                                                                     e       o
                                                r                  e
                                                                     r R     v
                                                p                  s
                                                                       e     i
                                                e                  s
                                                                     c a   S s
                                                t                  :
                                                                     o s   u i
                                            P u
                                                                     m o   r o
                                            r a                    I
                                                                     p n   p n
                                            e l                    n
                                                                     r a   l
                                            f                      v
                                                                     e b   u o                       o
                                            e c                    e
                                                                     h l   s f                       t
                                            r a O Capital public   n
                           Share capital                             e e           Retained profit   h Subtotal
                                            r p t reserve          t
                                                                     n     r   g                     e
                                            e i h                  o                                 r
                                                                     s r   e   e
                                            d t e                  r
                                                                     i e   s   n
                                                a r                y
                                                                     v s   e   e
                                            s l
                                                                     e e   r   r
                                            t                      s
                                                                       r   v   a
                                            o s                    h
                                                                     i v   e   l
                                            c e                    a
                                                                     n e
                                            k c                    r
                                                                     c         r
                                                u                  e
                                                                     o         i
                                                r                  s
                                                                     m         s
                                                i
                                                                     e         k
                                                t
                                                i
                                                e
                                                s
I. Balance at the end
                           364,100,000.00          54,142,850.01                   -341,107,435.91     77,135,414.10         77,135,414.10
of the last year
      Add: Changes of
accounting policy
                  Error
correction of the last
period
              Enterprise
  combine under the
  same control
       Other
II. Balance at the
                           364,100,000.00          54,142,850.01                   -341,107,435.91     77,135,414.10         77,135,414.10
beginning of this year
III. Increase/ Decrease
in this year (Decrease                                                             1,282,165.58        1,282,165.58          1,282,165.58
is listed with “-”)


                                                                   51
                司公限有份股心中游旅海东大南海                                          2019   文全告报度年半年
 (i)              Total
comprehensive                                                         1,282,165.58      1,282,165.58         1,282,165.58
income
 (ii) Owners’ devoted
and decreased capital
1.Common         shares
invested            by
shareholders
2. Capital invested by
holders of other equity
instruments
3. Amount reckoned
into owners equity
with       share-based
payment
4. Other
(III) Profit distribution
1. Withdrawal          of
surplus reserves
2. Withdrawal        of
general risk provisions
3. Distribution       for
owners                (or
shareholders)
4. Other
(IV) Carrying forward
internal owners’ equity
1. Capital reserves
conversed to capital
(share capital)
2. Surplus reserves
conversed to capital
(share capital)
3. Remedying loss
with surplus reserve
4 Carry-over retained
 .
earnings from the
defined benefit plans
5 Carry-over retained
 .
earnings from other
comprehensive
income
6. Other
(V)         Reasonable
reserve
1. Withdrawal in the
report period

2. Usage in the report
period
(VI)Others
IV. Balance at the end      364,100,000.00       54,142,850.01        -339,825,270.33   78,417,579.68        78,417,579.68

                                                                 52
              司公限有份股心中游旅海东大南海                                                             2019   文全告报度年半年
of the report period


        8. Change of owners’ equity of parent company

        Current period
                                                                                                                           In RMB

                                                    Semi-annual of 2019
                                                                     Other
                                                                     equity
                                                                     instru
                                                                                               O
                                                                     ment
                                                                                               t
                                                                         P
                                                                                               h
                                                                         e                   L
                                                                                               e
                                                                         r                   e
                                                                                               r R
                                                                         p                   s
                                                                                                 e
                                                                         e                   s
                                                                                               c a   S
                                                                         t                   :
                                                                                               o s   u
                                                                     P u
                                                                                               m o   r
                                                                     r a                     I
                                                                                               p n   p
                                                                     e l                     n
                                                                                               r a   l
                                                                     f                       v
                                                                                               e b   u                     O
                                                                     e c                     e
                                                                                               h l   s                     t
Item                                                                 r a O Capital public    n                               Total owners’
                                                    Share capital                              e e       Retained profit   h
                                                                     r p t reserve           t                               equity
                                                                                               n     r                     e
                                                                     e i h                   o                             r
                                                                                               s r   e
                                                                     d t e                   r
                                                                                               i e   s
                                                                         a r                 y
                                                                                               v s   e
                                                                     s l
                                                                                               e e   r
                                                                     t                       s
                                                                                                 r   v
                                                                     o s                     h
                                                                                               i v   e
                                                                     c e                     a
                                                                                               n e
                                                                     k c                     r
                                                                                               c
                                                                         u                   e
                                                                                               o
                                                                         r                   s
                                                                                               m
                                                                         i
                                                                                               e
                                                                         t
                                                                         i
                                                                         e
                                                                         s
I. Balance at the end of the last year              364,100,000.00           54,142,850.01               -340,454,153.72      77,788,696.29
     Add: Changes of accounting policy
         Error correction of the last period
       Other
II. Balance at the beginning of this year           364,100,000.00           54,142,850.01               -340,454,153.72      77,788,696.29
III. Increase/ Decrease in this year (Decrease is
                                                                                                         755,475.22           755,475.22
listed with “-”)
  (i) Total comprehensive income                                                                         755,475.22           755,475.22
 (ii) Owners’ devoted and decreased capital
1.Common shares invested by shareholders
2. Capital invested by holders of other equity
instruments

                                                                      53
               司公限有份股心中游旅海东大南海                                                             2019   文全告报度年半年
3. Amount reckoned into owners equity with
share-based payment
4. Other
(III) Profit distribution
1. Withdrawal of surplus reserves
2. Distribution for owners (or shareholders)
3. Other
(IV) Carrying forward internal owners’ equity
1. Capital reserves conversed to capital (share
capital)
2. Surplus reserves conversed to capital (share
capital)
3. Remedying loss with surplus reserve
4 Carry-over retained earnings from the defined
 .
benefit plans
5 Carry-over retained earnings from other
 .
comprehensive income
6. Other
(V) Reasonable reserve
1. Withdrawal in the report period

2. Usage in the report period
(VI)Others
IV. Balance at the end of the report period       364,100,000.00            54,142,850.01                 -339,698,678.50       78,544,171.51
        Last period
                                                                                                                              In RMB

                                                  Semi-annual of 2018
                                                                   Other                        O
                                                                   equity                   L   t
                                                                   instru                   e   h
                                                                                                  R
                                                                   ment                     s   e
                                                                                                  e
                                                                       P                    s   r
                                                                                                  a   S
                                                                       e                    :
                                                                                                  s   u
                                                                   P r                          c
                                                                                                  o   r
                                                                   r p                      I   o
                                                                                                  n   p
                                                                   e e                      n   m
                                                                                                  a   l
                                                                   f t                      v   p
                                                                                                  b   u                       O
                                                                   e u                      e   r
                                                                                                  l   s                       t
Item                                                               r a      Capital         n   e         Provision      of     Total owners’
                                                  Share capital           O                       e                           h
                                                                   r l      reserve         t   h         general risk          equity
                                                                          t                           r                       e
                                                                   e                        o   e                             r
                                                                          h                       r   e
                                                                   d c                      r   n
                                                                          e                       e   s
                                                                       a                    y   s
                                                                          r                       s   e
                                                                   s p                          i
                                                                                                  e   r
                                                                   t i                      s   v
                                                                                                  r   v
                                                                   o t                      h   e
                                                                                                  v   e
                                                                   c a                      a
                                                                                                  e
                                                                   k l                      r   i
                                                                                            e   n
                                                                        s                   s   c
                                                                        e                       o


                                                                    54
               司公限有份股心中游旅海东大南海                                                 2019   文全告报度年半年
                                                                      c                   m
                                                                      u                   e
                                                                      r
                                                                      i
                                                                      t
                                                                      i
                                                                      e
                                                                      s

I. Balance at the end of the last year              364,100,000.00        54,142,850.01       -341,107,435.91      77,135,414.10
      Add: Changes of accounting policy
          Error correction of the last period
        Other
II. Balance at the beginning of this year           364,100,000.00        54,142,850.01       -341,107,435.91      77,135,414.10
III. Increase/ Decrease in this year (Decrease is
                                                                                              1,282,165.58         1,282,165.58
listed with “-”)
 (i) Total comprehensive income                                                               1,282,165.58         1,282,165.58
 (ii) Owners’ devoted and decreased capital
1.Common shares invested by shareholders
2. Capital invested by holders of other equity
instruments
3. Amount reckoned into owners equity with
share-based payment
4. Other
(III) Profit distribution
1. Withdrawal of surplus reserves
2. Distribution for owners (or shareholders)
3. Other
(IV) Carrying forward internal owners’ equity
1. Capital reserves conversed to capital (share
capital)
2. Surplus reserves conversed to capital (share
capital)
3. Remedying loss with surplus reserve
4 Carry-over retained earnings from the defined
 .
benefit plans
5 Carry-over retained earnings from other
 .
comprehensive income
6. Other
(V) Reasonable reserve
1. Withdrawal in the report period

2. Usage in the report period
(VI)Others
IV. Balance at the end of the report period         364,100,000.00        54,142,850.01       -339,825,270.33      78,417,579.68




        III. Company profile

        1. Overview


                                                                     55
     司公限有份股心中游旅海东大南海                                                       2019   文全告报度年半年
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. (hereinafter referred to as the "Company") is a
standardized company limited by shares established on April 26, 1993 and restructured from Hainan Sanya
Dadonghai Tourism Centre Development Co., Ltd. with the approval of Hainan Shareholding System Pilot Group
office via its Document Qiong Gu Ban Zi [1993] No.11. On May 6, 1996, the Company was reorganized and
separated with the reply of Hainan Securities Management Office by its Document Qiong Zheng Ban [1996]
No.58. On October 8, 1996 and January 28, 1997, the Company was approved to respectively issue 80 million B
shares and 14 million A shares on Shenzhen Stock Exchange and list for sales. On June 20, 2007, the Company
carried out the split share structure reform. The non-tradable shareholders of the Company paid shares to the
tradable shareholders for obtaining the circulation rights, and the tradable shareholders got 3 shares for every 10
shares. The Company belongs to tourism and catering service industry.


As at June 30, 2019, the Company's accumulative total issued capital was 364.1 million shares and the
Company's registered capital was RMB 364.1 million. Legal representative: Yuan Xiaoping. Unified social
credit code: 91460000201357188U. Domicile: Dadonghai, Hedong District, Sanya. Business scope:
Accommodation and catering industry (limited to branches); photography; flower bonsai, knitwear, general
merchandise, hardware and electrical equipment, chemical products (except franchised operations), daily
necessities, industrial means of production (except franchised operations), metal materials, machinery
equipment; sales of train, bus and vehicle tickets on an agent basis, etc. The Company's largest shareholder is
Luoniushan Co., Ltd.


The financial statements were approved by all directors of the Company for disclosure on August 8, 2019.


2. Scope to the consolidated financial statements

Scope of the consolidated financial statement for the period has no changes and as at 30 June 2019, the
subsidiary included into the Company's scope of consolidated financial statements is as follows:
                          Name                                          Relationship with the Company
Hainan Wengao Tourist Resources Development Co., Ltd.                    A wholly-owned subsidiary


IV. Basic for the preparation of the financial statements

1. Preparation basis

Based on going concern and according to actually occurred transactions and events, the Company prepared
financial statements in accordance with the Accounting Standards for Business Enterprises — Basic
Standards and the specific accounting standards, the Accounting Standards for Business Enterprises -
Application Guidance, the Accounting Standards for Business Enterprises - Interpretation and other relevant
provisions, issued by the Ministry of Finance, (hereinafter referred to collectively as the "Accounting
Standards for Business Enterprises"), as well as the disclosure provisions of the Rules for the Compilation

                                                        56
      司公限有份股心中游旅海东大南海                                                                   2019   文全告报度年半年
and Submission of Information Disclosure by Companies Offering Securities to the Public No.15 - General
Requirements for Financial Reports (Revised in 2014).
2. Going concern
The Company currently has sufficient working capital and normal operating conditions. It is estimated that
the operating activities of the Company will still continue in the next 12 months.


V. Significant accounting policies and accounting estimates

Specific accounting policies and estimation attention:
The main accounting policies and accounting estimates of the Company had no change.


1. Statement on compliance with the Accounting Standards for Business Enterprises


The financial statements prepared by the Company comply with the requirements of the Accounting Standards for Business
Enterprises, and truly and completely present the financial position, operating results, cash flows of the Company and other related
information.


2. Accounting period


The accounting year is from January 1 to December 31 in calendar year.


3. Operating cycle


The Company's operating cycle is 12 months.


4. Reporting currency


The Company adopts RMB as its reporting currency.


5. Accounting Treatment Method for Business Combinations (under the same/different control)


Business combination under common control: The assets and liabilities acquired by the Company in business
combinations are measured at book values of assets and liabilities of the combinee (including the goodwill
arising from the acquisition of the combinee by the ultimate controller) in the consolidated financial
statements of the ultimate controller on the combination date. The stock premium in the capital reserves is
adjusted according to the difference between the book value of the net assets acquired in business
combination and the book value of the consideration paid for the combination (or total par value of shares
issued). If there is no sufficient stock premium in the capital reserves for write-downs, the retained earnings
shall be adjusted.


Business combination not under common control: The Company shall, on the acquisition date, measure the
                                                                57
     司公限有份股心中游旅海东大南海                                                         2019   文全告报度年半年
assets surrendered and liabilities incurred or assumed by the Company for a business combination at their
fair values. The difference between the fair value and their book value shall be included in the current profit
or loss. The Company shall recognize the difference of the combination costs in excess of the fair value of
the identifiable net assets acquired from the acquiree as goodwill. The Company shall recognize the
difference of the combination costs in short of the fair value of the identifiable net assets acquired from the
acquiree in the current profit or loss after review.


The auditing, legal services, consulting and other intermediary service fees as well as other relevant direct
expenses for business combination will be included in the current profit or loss at occurrence; the transaction
costs for the issue of equity securities shall be used to write down equities.


6. Preparation methods of consolidated financial statements


1)Scope of consolidation
The scope of consolidated financial statements of the Company is determined on the basis of control, and all
its subsidiaries (including the investee's partible part that is under control of the Company) shall be included
in the consolidated financial statements.


2)Procedures of consolidation
The Company prepares the consolidated financial statements based on financial statements of itself and its
subsidiaries and according to other relevant information. Upon preparation of consolidated financial
statements, the Company shall deem the whole group as a whole accounting entity, and reflects the overall
financial position, operating results and cash flows of the group in accordance with relevant requirements for
recognition, measurement and presentation as stated in the Accounting Standards for Business Enterprises as
well as uniform accounting policies.


All the subsidiaries within the consolidation scope of consolidated financial statements shall adopt the same
accounting policies and accounting periods as those of the Company. If the accounting policies or accounting
periods of a subsidiary are different from those of the Company, the consolidated financial statements of the
subsidiary, upon preparation of consolidated financial statements, shall be adjusted according to the
accounting policies and accounting periods of the Company. For the subsidiaries acquired through business
combination not under the same control, adjustments to their financial statements shall be made based on the
fair values of net identifiable assets on the acquisition date. For a subsidiary acquired through business
combination under common control, adjustment to its financial statements shall be made based on the book
values of its assets and liabilities (including goodwill formed in the acquisition of the subsidiary by its
ultimate controller) as presented in the financial statements of the ultimate controller.


                                                        58
     司公限有份股心中游旅海东大南海                                                   2019   文全告报度年半年
The share of owners' equity, current net profits and losses, and current comprehensive income of subsidiaries
attributable to minority owners shall be respectively and separately listed under the owner's equity item of a
consolidated balance sheet, the net profit item of a consolidated income statement, and the total
comprehensive income in a consolidated income statement. Where the current losses shared by a minority
shareholder of a subsidiary exceeds the balances arising from the shares enjoyed by the minority shareholder
in the owners' equity of the subsidiary at the beginning of the period, minority equity shall be written down
accordingly.


(1) Increase of subsidiaries or business
During the reporting period, if the Company acquired subsidiaries or business from the business combination
under common control, the beginning balance in the consolidated statement of financial position shall be
adjusted; the revenue, expenses and profits of the newly acquired subsidiaries or business from the beginning
to the end of the reporting period shall be included into the consolidated income statement; the cash flows of
the newly acquired subsidiaries or business from the beginning to the end of the reporting period shall be
included in the consolidated statement of cash flow. Relevant items in the comparative financial statements
of the subsidiaries shall be adjusted accordingly, as if the reporting entity after the business combination
exists at the time when the ultimate controller has the control power.


Where control can be exercised on the investee under the common control for additional investment or other
reasons, adjustment will be made as if all parties involved in the combination exist at the beginning of the
control by the ultimate controller. Equity investments held before the control over the combined party is
obtained, the related gains and losses, other comprehensive income as well as other changes in net assets
recognized from the later of the date when the original equity is obtained or the date when the acquirer and
the acquiree are under the same control, to the combination date will respectively write down the retained
earnings or current profit or loss in the comparative statements.


During the reporting period, if the Company increased subsidiaries or business from business combinations
not under common control, the beginning balance in the consolidated balance sheet shall not be adjusted; the
revenue, expenses and profits of the subsidiaries or business from the acquisition date to the end of the
reporting period shall be included in the consolidated income statement; cash flows of the subsidiaries and
business from the acquisition date to the end of the reporting period shall be included in the consolidated
statement of cash flows.


Where the Company can control the investee not under common control from additional investments, it shall
re-measure equity of the acquiree held before the acquisition date at the fair value of such equity on the


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acquisition date and include the difference of the fair value and book value in the investment income in the
year. Where equity of the acquiree held before the acquisition date involves in other comprehensive income
accounted for under equity method and other changes in owners' equity other than net profits or losses, other
comprehensive income and profit distribution, the relevant other comprehensive income and other changes in
owners' equity shall be transferred to investment income in the year which the acquisition date falls in,
except for other comprehensive income from changes arising from re-measurement of net liabilities or net
assets of defined benefit plan by the investee.


(2) Disposal of subsidiaries or business
①   General method of treatment
During the reporting period, where the Company disposes of any subsidiary or business, the revenues, expenses
and profits of the subsidiary or business from the beginning period to the disposal date shall be included in the
consolidated income statement; cash flows of the subsidiary or business from the beginning period to the disposal
date shall be included in the consolidated statement of cash flows.


When the Company loses the control over the investee due to disposal of partial equity investment or other
reasons, the remaining equity investment after the disposal will be re-measured by the Company at its fair value
on the date of loss of the control. The difference of the sum of the consideration acquired from disposal of equities
and the fair value of the remaining equities less the sum of the share calculated at the original shareholding ratio in
net assets of the original subsidiary which are continuously calculated as of the acquisition date or the
combination date and goodwill shall be included in the investment income of the period in which the control is
lost. Other comprehensive incomes associated with the equity investments of the original subsidiary, or the
changes in owners' equity other than net profit or loss, other comprehensive income and profit distribution, are
transferred into investment income of the period when the control is lost, except for other comprehensive income
from the change in net liability or net asset due to the investor's re-measurement of defined benefit plan.


Where the Company loses the control of any subsidiary due to the decline in its shareholding ratio in the
subsidiary, caused by the increase of investment in the subsidiary by other investors, the accounting treatment
shall be conducted according to the above principles.


②   Disposal of subsidiaries by stages
If the control is lost due to disposal of the equities in subsidiaries through multiple transactions by stages, and the
terms, conditions and economic impact of the transactions related to the enterprise's disposal of its investment in
the subsidiaries meet one or more of the following circumstances, it usually indicates that multiple transactions
should be included in a package deal and subject to accounting processing as below:
i.     These transactions are concluded at the same time or under the consideration of mutual effect;




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ii.   These transactions as a whole can reach a complete business result;


iii.The occurrence of a transaction depends on the occurrence of at least one other transaction;


iv.A single transaction is uneconomical but is economical when considered together with other transactions.


Where various transactions of disposal of equity investments in subsidiaries until loss of the control belong to a
package deal, accounting treatment shall be made by the Company on the transactions as a transaction to dispose
subsidiaries and lose the control; however, the difference between each disposal cost and net asset share in the
subsidiaries corresponding to each disposal of investments before loss of the control should be recognized as other
comprehensive income in the consolidated financial statements and should be transferred into the current profit or
loss at the loss of the control.


Where various transactions of disposal of equity investments in subsidiaries until loss of the control do not belong
to a package deal, before the loss of the control, accounting treatment shall be made according to the relevant
policies for partial disposal of equity investments in the subsidiary without losing control; at the loss of the control,
accounting treatment shall be made according to general treatment methods for disposal of subsidiaries.


(3) Purchase of minority interest of subsidiaries
The share premium in the capital reserves under the consolidated balance sheet will be adjusted at the
difference between the long-term equity investment acquired by the Company for the purchase of minority
interest and the share of net assets calculated constantly from the acquisition date (or combination date)
according to the newly increased shareholding ratio. Where the share premium is insufficient to offset,
retained earnings will be adjusted.


(4) Partial disposal of equity investments in subsidiaries without losing control
The share premium in the capital reserves under the consolidated balance sheet will be adjusted at the
difference between the proceeds achieved from the partial disposal of long-term equity investments in
subsidiaries and the share of net assets of subsidiaries attributable to the Company corresponding to the
disposal of long-term equity investments and calculated constantly from the acquisition date or combination
date, without losing the control. Where the share premium is insufficient to write down, the retained earnings
will be adjusted.


7. Classification and accounting treatment of joint venture arrangements
Joint venture arrangements are classified into joint operation and joint venture.
Joint operation refers the joint venture arrangement where the Company is a joint venturer and enjoys assets
relevant the joint venture arrangement and assumes liabilities relevant to the same.

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The Company recognizes the following items related to its share of benefits in the joint operation and
conduct accounting treatment in accordance with relevant accounting standards for business enterprises:
(1) assets peculiar to the Company and assets jointly owned by the Company based on shares held;


(2) liabilities undertaken by the Company solely and liabilities jointly undertaken by the Company based on
shares held;


(3) revenue from the sales of output share enjoyed by the Company in the joint operation;


(4) revenue from the sales of the joint operation output based on the shares held by the Company; and


(5) separate costs, and costs for the joint operation based on the shares held by the Company.


8. Recognition criteria of cash and cash equivalents


For the purpose of preparing the statement of cash flows, the term “cash” refers to the cash on hand and the
unrestricted deposit of the Company. The term “cash equivalents” refers to short-term (maturing within three
months from acquisition) and highly liquid investments that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of change in value.


9. Foreign currency business and foreign currency statement conversion


Foreign currency transactions will be translated at the spot exchange rate on the transaction date and be accounted
for at RMB.


The balance of foreign currency monetary items are translated at the spot exchange rate on the balance sheet date
and the exchange differences arising therefrom shall be included in the current profit and loss, except those
exchange differences arising from the special borrowings of foreign currency related to the acquired and
constructed assets qualified for capitalization that will be capitalized at the borrowing expenses. Foreign currency
non-monetary items measured at historical costs shall still be converted at the spot exchange rates when the
transactions occur, without changing the functional currency amount. Foreign currency non-monetary items
measured at fair value shall be translated at the spot exchange rates on the day when the fair value is determined.
The exchange difference arising therefrom is included in the current profit and loss or capital reserves.


10. Financial instruments

Financial instruments include financial assets, financial liabilities and equity instruments.
1) Classification of financial instruments


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Upon initial recognition, financial assets and financial liabilities are classified into: financial assets or financial
liabilities measured at fair value through current profit and loss, including financial assets or financial liabilities
held for trading and financial assets or financial liabilities directly designated to be measured at fair value through
current profit and loss; held-to-maturity investments; receivables; available-for-sale financial assets; and other
financial liabilities, etc.


2) Recognition and measurement of financial instruments
(1) Financial assets (financial liabilities) measured at fair value through current profit and loss
Financial assets (financial liabilities) measured at fair value through current profit and loss are initially recognized
at the fair value upon acquisition (net of cash dividends declared but not yet paid or bond interest due but not yet
received) and the related transaction costs are included in current profit and loss.
The interests or cash dividends to be received during the holding period are recognized as investment income.
Change in fair values is included in the current profit and loss at the end of the period.
The difference between the fair value and the initial book-entry value is recognized as investment income upon
disposal; meanwhile, adjustments are made to profits or losses from changes in fair values.
(2) Held-to-maturity investments
Held-to-maturity investments are initially recognized at the sum of the fair value (net of bond interest due but not
yet received) and related transaction costs upon acquisition.
The interest income is calculated and recognized according to amortized costs and effective interest rates (as per
coupon rates if the difference between effective interest rates and coupon rates is small) during the holding period,
and is included in the investment income. The effective interest rates are determined upon acquisition and remain
unchanged during the expected remaining period, or a shorter period if applicable.
Upon disposal, the difference between the purchase price obtained and the book value of the investment is
recognized in investment income.
(3) Receivables
For creditor’s rights receivable arising from external sales of goods or rendering of service by the Company and
other creditor's rights of other enterprises (excluding liability instruments quoted in an active market) held by the
Company, including accounts receivable, other receivables, notes receivable, prepayment and others, the initial
recognition amount shall be the contract price or agreement price receivable from purchasing party; for those with
financing nature, they are initially recognized at their present values.
Upon recovery or disposal, the difference between the purchase price obtained and the book value of the
receivables is recognized in current profit and loss.
(4) Available-for-sale financial assets
Financial assets (financial liabilities) measured at fair value through current profit and loss are initially recognized
at the fair value and related transaction expenses upon acquisition (net of cash dividends declared but not yet paid
or bond interest due but not yet received).
The interests or cash dividends to be received during the holding period are recognized as investment income. The
interest or cash dividends should be measured at fair value and their changes in fair value should be included in

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other comprehensive income. However, for an equity instrument investment that has no quoted price in an active
market and whose fair value cannot be reliably measured, and for derivative financial asset linked to the said
equity instrument investment and settled by delivery of the same equity instrument, they shall be measured at cost.
Difference between the proceeds and the book value of the financial assets is recognized as investment profit or
loss upon disposal; meanwhile, amount of disposal corresponding to the accumulated change in fair value which
is originally and directly included in other comprehensive income shall be transferred out and recognized as
investment gains or losses.
(5) Other financial liabilities
Other financial liabilities are initially recognized at the sum of fair value and transaction expenses, and
subsequently measured at amortized costs. Subsequent measurement is conducted at the amortized cost.


3) Recognition and measurement of transfer of financial assets
When a financial assets transfer occurs, the financial assets will be derecognized when substantially all the risks
and rewards on the ownership of the financial assets have been transferred to the transferee; and they will not be
derecognized if substantially all the risks and rewards on the ownership of the financial assets have been retained.
When determining whether the transfer of a financial asset meets the above de-recognition criteria of financial
assets, the Company adopts the principle of substance over form. The Company classifies the transfer of a
financial asset into the entire transfer and the partial transfer of financial asset. Where the entire transfer of the
financial asset meets the de-recognition conditions, the difference of the following two amounts will be included
in current profit and loss:
(1) The book value of the transferred financial asset;
(2) The sum of the consideration received from the transfer and the accumulated amount of the changes in fair
value originally and directly included in owners’ equity (the situation where the financial asset transferred is an
available-for-sale financial asset is involved in).
If the partial transfer of financial asset satisfies the criteria for de-recognition, the entire book value of the
transferred financial asset shall be split into the derecognized and recognized part according to their respective fair
value and the difference between the amounts of the following two items shall be included in the current profit
and loss:
(1) The book value of the derecognized part;
(2) The sum of the consideration for the derecognized part and the portion of de-recognition corresponding to the
accumulated amount of the changes in fair value originally and directly included in owners’ equity (the situation
where the financial asset transferred is an available-for-sale financial asset is involved in).
If the transfer of financial assets does not meet the de-recognition criteria, the financial assets shall continue to be
recognized, and the consideration received will be recognized as a financial liability.
4) De-recognition criteria of financial liabilities
Where the present obligations of financial liabilities have been discharged in whole or in part, the financial
liability is derecognized or any part thereof will be derecognized; if the Company signs an agreement with
creditors to replace the existing financial liabilities by undertaking new financial liabilities, and the new financial

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liabilities are substantially different from the existing ones in terms of contract terms, the existing financial
liabilities will be derecognized, and at the same time, the new financial liability will be recognized.
Where substantive changes are made to the contract terms of existing financial liability in whole or in part, the
existing financial liabilities or part thereof will be derecognized, and the financial liability the terms of which have
been modified will be recognized as a new financial liability.
Where financial liabilities are derecognized is whole or in part, the difference between the book value of the
financial liabilities derecognized and the consideration paid (including non-cash assets transferred out or new
financial liabilities borne) will be included into current profit and loss.
Where the Company repurchases part of a financial liability, the entire book value of the financial liability shall be
split into the derecognized part and continuously-recognized part according to their respective relatively fair
values on the repurchase date. The difference between the book value of the derecognized part and the
consideration paid (including non-cash assets transferred out or new financial liabilities assumed) shall be
included in the current profit and loss.


5) Method of determining the fair value of financial assets and financial liabilities
The fair value of a financial instrument, for which there is an active market, is the prices quoted for it therein. Fair
value of a financial instrument having no active market shall be determined by using valuation techniques. At the
time of valuation, the Company adopts the techniques that are applicable in the current situation and supported by
enough available data and other information, selects the input values that are consistent with the features of assets
or liabilities as considered by market participants in relevant asset or liability transactions, and gives priority to
use relevant observable inputs. The unobservable inputs are used only under the circumstance when it is
impossible or unobservable inputs to obtain relevant observable inputs.


6) Testing and accounting methods of impairment of financial assets (excluding receivables)
Except for the financial assets measured at fair values through current profit and loss, the book value of financial
assets on the balance sheet date should be checked. If there is objective evidence that a financial asset is impaired,
provision for impairment shall be made.
(1) Impairment provision for available-for-sale financial assets:
If the fair value of available-for-sale financial assets has significantly declined at the end of the period, or it is
expected that the trend of decrease in value is non-temporary after considering various relevant factors, the
impairment shall be recognized, and accumulated losses from decreases in fair value originally and directly
included in owners’ equity shall be all transferred out and recognized as impairment loss.
For available-for-sale debt instruments whose impairment losses have been recognized, if their fair values rise in
the subsequent accounting period and such rise is objectively related to the matters occurring after the recognition
of impairment loss, the previously recognized impairment loss shall be reversed and recorded into the current
profit and loss.
Impairment losses on available-for-sale equity instruments shall not be reversed through profit or loss.
(2) Impairment provision for held-to-maturity investments:


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Measurement of impairment losses on held-to-maturity investments is treated in accordance with the measurement
method for impairment losses on receivables.


11. Note receivable

12.Account receivable

(1) Account receivable with individually significant amount and with bad debt provision accrual
independently

Basis and standard for "individually
                                       Top 5 accounts receivable and other receivables by individual amount at the end of the year
significant"

                                       The Company will separately conduct an impairment test on an individual basis and the
                                       allowance for bad debts will be made at the lower of the present value of the expected future
Methods for provision for bad debts
                                       cash flow and the book value thereof and included in current profit and loss. Those do not
of receivables with individually
                                       impair after the separate test shall be included into corresponding portfolio for provision for
significant amount:
                                       bad debts. If separate test indicates that there is impairment of receivables, they shall not be
                                       included the receivables portfolio with similar risk credit characteristics for an impairment test.


(2) Receivables provided for bad debts on a portfolio basis

                             Portfolio                                                 Methods for provision for bad debts
Account age                                                          Age of the account
Accrual method for bad debt provision by portfolio
Account age                                                          Aging analysis



               Account age                           Provision ratio for receivables             Proportion ratio for other receivables
Within 1 year (inclusive)                                                              0.00%                                       0.00%


1-2 years                                                                              5.00%                                       5.00%
2-3 years                                                                           15.00%                                        15.00%
Over 3 years

3-4 years                                                                           25.00%                                        25.00%
4-5 years                                                                           50.00%                                        50.00%
Over 5 years                                                                      100.00%                                        100.00%


(3) Accounts receivable with individually insignificant amounts and individual allowance for bad debt

Reasons for separate         At the end of the year, there are objective evidences showing that the individual balances below top five
provision of allowance for are impaired; for example, the debtor is dissolved, bankrupts or dies, and therefore the receivables
bad debts                    cannot be recovered after the bankruptcy property or the estate is repaid.


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                             if there is an objective evidence that the impairment on receivables has occurred, such receivables shall
                             be separated from relevant portfolio to conduct impairment test separately, based on which the
Provision method of
                             impairment losses are recognized.
allowance for bad debts
                             Receivables other than accounts receivable and other receivables are subject to impairment provision
                             by using the specific identification methods.

(4) Reversal of bad debt provision
If there is objective evidence that the value of the receivable has been recovered and is objectively related to the matters occurred
after the recognition of the loss, the previously recognized impairment loss shall be reversed and included in the current profit or loss.
However, the book value after the reversal does not exceed the amortized cost of the receivable on the reversal date, assuming no
provision for impairment.


13. Receivables financing

14.Other account receivable

Determination and accounting treatment of the expected credit loss for other account receivable: nil


15.   Inventories

Does the Company need to comply with the disclosure requirement of the special industry
Nil


16. Contract assets

17.Contract costs

18. Assets held for sale

19. Investment in debt obligations

20. Other investment in debt obligations

21. Long-term account receivable

22. Long-term equity investment

1) Judgment criteria for common control and significant influence


Joint control refers to the control shared over an arrangement in accordance with the relevant stipulations, and the
decision-making of related activities of the arrangement should not be made before the party sharing the control
right agrees the same. Where the Company exercises joint control over the investee together with other parties to
the joint venture and enjoys the right on the investee's net assets, the investee is a joint venture of the Company.



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Significant influence refers to the power to participate in making decisions on the financial and operating policies
of an enterprise, such as appointing representative to the board of directors or similar organs of authority of the
investee, but not the power to control the investee, or jointly control, the formulation of such policies with other
parties. Where an investor is able to have significant influences on an investee, the investee shall be the
Company's associate.


2) Determining of initial investment cost


(1) Long-term equity investment acquired from business combination
Business combination under the common control: if the Company pays a consideration to the combinee in cash,
by transferring non-cash assets or by assuming debts, the share of book value of its owners' equity in the combinee
in the consolidated financial statements of the ultimate controlling party shall be regarded, on the merger date, as
the initial investment cost of the long-term equity investment. If there is a difference between the initial
investment cost of the long-term equity investment and the total of book values of the paid cash, transferred
non-cash assets and of assumed debts as well as the face value of issued share, the difference shall be used to
adjust the share premium in the capital reserve; and if the share premium in the capital reserve is insufficient to be
offset, retained earnings shall be adjusted.
In case the Company can exercise control over the investee under common control for additional investment or
other reasons, the initial investment cost of long-term equity investments is recognized at the share of book value
of net asset of the acquiree after the combination in the consolidated financial statements of the ultimate controller
on the combination date. The stock premium should be adjusted at the difference between the initial investment
cost of long-term equity investments on the combination date and the book value of long-term equity investments
before the combination plus the book value of consideration paid for additional shares; if there is no sufficient
stock premium for write-downs, the retained earnings are adjusted.
Business combination not under the common control: the Company recognizes the combination cost determined
on the combination date as the initial cost of long-term equity investments. Where the Company can control the
investee not under common control from additional investments, the initial investment cost should be changed to
be accounted for under the cost method and recognized at the sum of the book value of equity investments
originally held and newly increased investment cost. Under business combination not under the common control,
the auditing, legal services, consulting and other intermediary fees and other related administrative expenses for
business combination will be included into current profit and loss upon occurrence; the transaction costs for the
issuance of equity securities or debt securities shall be included into the initial recognition amount of equity
securities or debt securities.
(2) Long-term equity investments obtained by other means
For long-term equity investments acquired from making payments in cash, the initial cost is the actually paid
purchase cost.
For long-term equity investments acquired from issuance of equity securities, the initial investment cost is the fair
value of the issued equity securities.


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If the exchange of non-monetary assets has commercial substance and the fair values of assets traded out and
traded in can be measured reliably, the initial cost of long-term equity investment traded in with non-monetary
assets are determined based on the fair values of the assets traded out and the relevant taxes and surcharges
payable unless there is any conclusive evidence that the fair values of the assets traded in are more reliable; if the
exchange of non-monetary assets does not meet the above criteria, the book value of the assets traded out and the
relevant taxes and surcharges payable are recognized as the initial cost of long-term equity investment traded in.
For long-term equity investment acquired from debt restructuring, the initial cost is determined based on the fair
value.


3) Subsequent measurements and recognition of gain or loss


(1) Long-term equity investment under cost method
Long-term equity investments in subsidiaries are accounted for under the cost method. Except for the actual price
paid for acquisition of investment or the cash dividends or profits contained in the consideration which have been
declared but not yet distributed, the Company recognizes the investment income in the current year at the cash
dividends or profits declared by the investee.


(2) Long-term equity investment accounted for in the equity method
The Company's long-term equity investments in associates and joint ventures are accounted for by using the
equity method. If the initial cost is more than the share of the fair value of the investee' identifiable net asset to
which the Company shall be entitled when investing, the initial cost of the long-term equity investment will not be
adjusted. If the initial cost of a long-term equity investment is less than the share of the fair value of the investee's
identifiable net asset to which the Company shall be entitled when investing, the difference shall be included in
the current profit or loss.


The Company respectively recognizes the investment income and other comprehensive income according to the
shares of net profit or loss and other comprehensive income realized by the investee that should enjoyed or
assumed by the Company, and adjusts the book value of long-term equity investment; according to the profit
declared to be distributed by the investee or the part shall be enjoyed cash dividends calculation, to reduce the
book value of long-term equity investment correspondingly; for other changesin owners' equity excepting for ex
all profit or loss of the investee, other comprehensive income and profit distribution, the book value of long-term
equity investment shall be adjusted and included in the owners' equity.


When recognizing the share of net profit or loss of the investee that the Company shall enjoy, based on fair value
of various identifiable assets and others of the investee on acquisition and according to accounting policies and
accounting periods of the Company, the Company shall recognize such share after making adjustments to net
profit of the investee. When holding the investment, the investee should prepare the consolidated financial


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statements, it shall account for the investment income based on the net profit, other comprehensive income and
the changes in other owner's equity attributable to the investee.


The Company shall write off the part of incomes from internal unrealized transactions between the Company and
associates and joint ventures which are attributable to the Company according to the corresponding ratio and
recognize the profit and loss on investments on such basis. Where the losses from internal transactions between
the Company and the investee fall into the scope of assets impairment loss, the full amount of such losses should
be recognized. For transactions on investments or sales of assets between the Company and associates and joint
ventures, where such assets constitute business, they should be accounted for according to the relevant policies.


When the Company recognizes its share of loss incurred to the investee, treatment shall be done in the following
sequence: firstly, the book value of the long-term equity investment shall be reduced; secondly, where the book
value thereof is insufficient to cover the share of losses, investment losses are recognized to the extent of book
value of other long-term equities which form net investment in the investee in substance and the book value of
long term receivables shall be reduced. Finally, after all the above treatments, if the Company is still responsible
for any additional liability in accordance with the provisions stipulated in the investment contracts or agreements,
provisions are recognized and included into current investment loss according to the obligations estimated to
undertake. An investing party shall recognize the net loss incurred by the invested entity until the book value of
the long-term equity investment and other long-term interests which substantially form the net investment in the
invested entity are reduced to zero, unless the investing party is obliged to undertake extra losses. If the invested
entity realizes any net profit later, the investing party shall, after the amount of its attributable share of profits
offsets its attributable share of the unrecognized losses, resume recognizing its attributable share of profits.


(3) Disposal of long-term equity investments
For disposal of long-term equity investments, the difference between the book value and the actual price shall be
included into the current profit or loss.


Where a long-term equity investment is accounted for under the equity method, accounting treatment should be
made on the part which is originally included in other comprehensive income according to corresponding ratio by
using the same basis for the investee to directly dispose of the relevant assets or liabilities when the investments
are disposed of. Owner's equity recognized from the investee's changes in other owner's equity other than net
profit or loss, other comprehensive income and profit distribution should all transferred to the current profit and
loss in proportion.


In case the joint control or significant influence over the investee is lost for disposing part of equity investments or
other reasons, the remaining equity will be changed to be accounted for according to the recognition and
measurement principles of financial instruments. The difference between the fair value and the book value on the

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date of the loss of joint control or significant influence should be included in the current profit and loss. As to
other comprehensive income recognized based on measurement of the original equity investment under the equity
method, accounting treatment shall be made on the same basis as would be required if the investee had directly
disposed of the assets or liabilities related thereto when measurement under the equity method is terminated.
Owner's equity recognized from the investee's changes in other owner's equity other than net profit or loss, other
comprehensive income and profit distribution should all transferred to the current profit and loss when the equity
method confirmed is no longer adopted.


Where the Company loses the control over the investee due to disposal of partial equity investments or other
reasons, when it prepares separate financial statements, the remaining equity after disposal that can jointly control
or have significant influence on the investee will be measured at the equity method, and the remaining equity
should be deemed to have been adjusted at equity method on acquisition;


If the remaining equity after disposal cannot exercise joint control or significant influence on the investee, such
investments should be accounted for according to the provisions on the recognition and measurement of financial
instruments and the difference between fair value and book value on the date of loss of the control should be
included in the current profit and loss.


Where the disposed equities are acquired by the enterprise combination due to the reasons such as additional
investment, the remaining equities after the disposal are calculated based on the cost method or equity method in
preparing the individual financial statements, and other comprehensive income and other owners' equity
recognized because of the equity method adopted for the calculation of the equity investment held prior to the
purchase date are carried forward in proportion; the remaining equities after the disposal are changed to be made
in accordance with the relevant provisions in the recognition and measurement criteria of financial instruments
while other comprehensive income and other owners' equity are carried forward in full.


23. Investment property


Measurement mode
Measured by cost method
Depreciation or amortization method

Investment properties are properties to earn rentals or for capital appreciation or both. Examples include land
leased out under operating leases, land held for long-term capital appreciation, buildings leased out under
operating leases, (including buildings that have been constructed or developed for future lease out under operating
leases, and buildings that are being constructed or developed for future lease out under operating leases).


The Company measures the existing investment properties by using the cost model. For investment property
measured by using the cost model, the buildings for lease shall be depreciated by using policies the same as used

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for fixed assets of the Company, and the land use rights for lease shall be amortized by using the same policies as
applicable to intangible assets.


24. Fixed assets

(1) Recognition criteria

1)Fixed assets refer to tangible assets held for the purpose of producing commodities, providing services,
renting or business management with useful lives exceeding one year. Fixed assets are recognized when they
simultaneously meet the following conditions:
(1) It is probable that the economic benefits relating to the fixed assets will flow into the Company; and


(2) The costs of the fixed assets can be measured reliably.



2) Classification:   Fixed assets can be classified into: buildings and constructions, electronic equipment,
transport equipment, electronic entertainment equipment, other equipment and decoration improvements.
3)Initial measurement of fixed assets
Fixed assets shall be initially measured at actual costs on acquisition.
The costs of externally acquired fixed assets shall be determined by their purchase prices, related taxes and
surcharges and any attributable transport expenses, loading and unloading expenses, installation expenses
and professional service expenses incurred to prepare the fixed assets for its serviceable condition.


If the payment for a fixed asset is delayed beyond the normal credit conditions and it is of the financing
nature, the cost of the fixed asset shall be determined on the basis of the current value of the purchase price.


Costs of self-built fixed assets consist of necessary expenditures incurred before preparing the asset to reach
the condition for its intended use.


For fix assets obtained in debt restructuring by debtors for the settlement of his liabilities, their book-entry
value should be initially stated based on their fair values. Differences between the book values and the fair
values of the fix assets are included in the current profit and loss;


If the exchange of non-monetary assets has commercial substance, and the fair value of these assets can be
measured reliably, the book-entry value of fixed assets traded in is determined on the basis of the fair value
of the fixed assets traded out unless there is any conclusive evidence that the fair value of the assets traded in
is more reliable; if the exchange of non-monetary assets does not meet the above criteria, the cost of the
fixed assets traded in should be the book value of the assets traded out and relevant taxes and surcharges

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payable, and no profit or loss shall be recognized.


For fixed assets acquired from business combination under common control, their book-entry values are
recognized at the book values of the combinee; for fixed assets acquired from business combination not
under common control, their book-entry values are recognized at the fair value.


The Company shall state the assets acquired under finance lease at the lower of the book value of the leased
assets on the lease beginning date or the present value of the minimum lease payments.


(2) Depreciation method of fixed assets


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       Asset type          Depreciation method         Year for depreciation    Residual value rate
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 Houses and buildings     Straight-line method     20-40                       5%                      4.75%-2.37%
 Mechanical equipment     Straight-line method     8-20                        5%                      11.87%-4.75%
 Entertainment
                          Straight-line method     5-16                        5%                      19%-5.93%
 equipment
 Transportation
                          Straight-line method     7-12                        5%                      13.57%-7.91%
 equipment
 Other equipment          Straight-line method     8                           5%                      11.87%


(3) Reorganization basis, valuation and depreciation method for financial lease assets


25. Construction in progress

The Company need to comply with the disclosure requirement under Industry Information Disclosure Guidelines of the Shenzhen
Stock Exchange No.2 - Listed Companies Engaged in Related Business of Solid Mineral Resources
The book-entry values of the fixed assets are stated at total expenditures incurred before reaching working
condition for their intended use. For construction in progress that has reached working conditions for its intended
use but for which the completion of settlement has not been handled, it shall be transferred into fixed assets at the
estimated value according to the project budget, construction price or actual cost, etc. from the date when it
reaches the working conditions for its intended use. The fixed assets shall be depreciated in accordance with the
Company’s policy on fixed asset depreciation. Adjustment shall be made to the originally and provisionally
estimated value based on the actual cost after the completion of settlement is handled, but depreciation already
provided will not be adjusted.


The total amount of expenditure incurred by the project under construction before the construction of the asset
reaches the expected usable condition is recorded as the entry value of the fixed assets. If the project under
construction of fixed assets has reached the expected usable condition, but has not yet completed the final
settlement of the project, it will be transferred to the fixed value by the estimated value according to the project


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budget, cost or actual cost of the project from the date of the scheduled usable condition, and will be accrued the
depreciation of fixed assets according to the Company's fixed assets depreciation policy, after the completion of
final accounts, the original temporary valuation shall be adjusted according to the actual cost, but the original
depreciation amount will not be adjusted.

26. Borrowing costs

1)Recognition principles of capitalization of borrowing costs


Borrowing costs include the interest of borrowings, the amortization of discount or premium, auxiliary expenses,
exchange differences incurred by foreign currency borrowings, etc.
The borrowing costs incurred to the Company and directly attributable to the acquisition and construction or
production of assets eligible for capitalization should be capitalized and recorded into relevant asset costs; other
borrowing costs should be recognized as costs according to the amount incurred and be included into the current
profit and loss.
Assets eligible for capitalization refer to fixed assets, investment property, inventories and other assets which may
reach their intended use or sale status only after long-time acquisition and construction or production activities.
Borrowing costs may be capitalized only when all the following conditions are met at the same time:
(1) Asset disbursements, which include those incurred by cash payment, the transfer of non-cash assets or the
undertaking of interest-bearing debts for acquiring and constructing or producing assets eligible for capitalization,
have already been incurred;
(2) Borrowing costs have already been incurred;
(3) Purchase, construction or manufacturing activities that are necessary to prepare the assets for their intended
use are in progress.


2) Capitalization period of borrowing costs

Capitalization period refers to the period from commencement of capitalization of borrowing costs to its cessation;
period of suspension for capitalization is excluded.
Capitalization of borrowing costs should cease when the acquired and constructed or produced assets eligible for
capitalization have reached the working condition for their intended use or sale.
When some projects among the acquired and constructed or produced assets eligible for capitalization are
completed and can be used separately, the capitalization of borrowing costs of such projects should be ceased.
If all parts of the acquired and constructed or produced assets are completed but the assets cannot be used or sold
externally until overall completion, the capitalization of borrowing costs should be ceased at the time of overall
completion of the said assets.


3)Period of suspension for capitalization

If the acquisition and construction or production activities of assets eligible for capitalization are abnormally


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interrupted and such condition lasts for more than three months, the capitalization of borrowing costs should be
suspended; if the interruption is necessary procedures for the acquired, constructed or produced assets eligible for
capitalization to reach the working conditions for its intended use or sale, the borrowing costs continue to be
capitalized. Borrowing costs incurred during the interruption are recognized as the current profit and loss and
continue to be capitalized until the acquisition, construction or production of the asset restarts.


4) Calculation of capitalization amount of borrowing costs

As for special borrowings borrowed for acquiring and constructing or producing assets eligible for capitalization,
borrowing costs of special borrowing actually incurred in the current period less the interest income of the
borrowings unused and deposited in bank or return on temporary investment should be recognized as the
capitalization amount of borrowing costs.
As for general borrowings used for acquiring and constructing or producing assets eligible for capitalization, the
interest of general borrowings to be capitalized should be calculated by multiplying the weighted average of asset
disbursements of the part of accumulated asset disbursements exceeding special borrowings at end of each month
by the capitalization rate of used general borrowings. The capitalization rate is calculated by weighted average
interest rate of general borrowings.
As for borrowings with discount or premium, the to-be-amortized discount or premium in each accounting period
should be recognized by effective interest rate method, and the interest for each period should be adjusted.


27. Biological assets

28. Oil-and-gas assets

29. Right-of-use assets

30. Intangible assets

(1) Valuation method, useful lives and impairment


1)Valuation method of intangible assets


(1) The Company initially measures intangible assets at cost on acquisition;
The costs of externally purchased intangible assets include purchase prices, relevant taxes and surcharges and
other directly attributable expenditures incurred to prepare the assets for their intended use. If the payment for an
intangible asset is delayed beyond the normal credit conditions and it is of the financing nature, the cost of the
intangible asset shall be determined on the basis of the current value of the purchase price.
For an intangible asset obtained in debt restructuring by a debtor for the settlement of relevant liability, the
book-entry value shall be initially recognized based on the fair value of the intangible asset. Difference between
the book value of restructured debts and the fair value of the intangible asset used for debt off-set shall be


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included in the current profit or loss;
On the premise that non-monetary assets trade is of commercial nature and the fair value of the assets traded in or
out can be measured reliably, the intangible assets traded in with non-monetary assets should be recognized at the
fair value of the assets traded out, unless any unambiguous evidence indicates that the fair value of the assets
traded in is more reliable; as to the non-monetary assets trade not meeting the aforesaid premise, the book value of
the assets traded out and related taxes and surcharges payable should be recognized as the cost of the intangible
assets, with gains or losses not recognized.
For intangible assets acquired from business combination under common control, the initial book value are
initially recognized at the book value of the combinee; for intangible assets acquired from business combination
not under common control, the initial book value are initially recognized at the fair value.
Costs of intangible assets developed internally and independently include: the costs of materials and labor services
used to develop the intangible assets, the registration fee, the amortization of other patents and franchise used in
the process of development, the interest expenses meeting the condition for capitalization, and other direct
expenses for preparing the intangible assets for their intended use.


(2) Subsequent measurement
The useful lives of the intangible assets are analyzed and determined on their acquisition.
For intangible assets with definite useful lives, the Company shall adopt the straight-line method for amortization
within the period during which they can bring economic benefits to the Company; where the period during which
they can bring economic benefits to the Company cannot be forecast, those intangible assets shall be deemed as
assets with indefinite lives and no amortization will be made.
2) Estimates of useful lives of intangible assets with definite useful lives
                    Item                              Estimated useful lives                                  Basis
Land use rights                                             50 years                           Use term for the land use right title
The useful life and amortization method of intangible assets with limited useful life are reviewed at the end of each period.
Upon review, the useful lives and amortization method of the intangible assets as at the end of the year were not different from those
estimated before.


3)Judgment basis for intangible assets with indefinite useful lives

As at the balance sheet date, the Company has no intangible assets with indefinite useful lives.



(2) Accounting policy of internal R&D expenditures


31. Impairment of long-term assets


For the long-term equity investments, investment properties, fixed assets, construction in progress, intangible
assets, and other long-term assets measured at cost model, if there are signs of impairment, an impairment test will
be conducted on the balance sheet date. If impairment test results indicate that the recoverable amounts of the

                                                                  76
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assets are lower than their book value, the provision for impairment is made based on the differences, which are
recognized as impairment losses. The recoverable amounts of intangible assets are the higher of their fair values
less costs to sell and the present values of the future cash flows expected to be derived from the assets. The assets
impairment provision is calculated and made on an individual basis. If it is difficult for the Company to estimate
the recoverable amount of the individual asset, the recoverable amount of an asset group to which the said asset
belongs to will be determined. Asset group is the minimum combination of assets that can independently generate
cash inflows.
After the losses from asset impairment are recognized, they are not reversed in subsequent periods.


32. Long-term deferred expenses

Long-term deferred expenses refer to various expenses which have been already incurred but will be born in the
reporting period and in the future with an amortization period of over one year.


1) Amortization method

Long-term deferred expenses are evenly amortized over the beneficial period



2) Amortization period

                            Item                                                 Amortization period
Hotel exterior decoration                                                              4 years
Fire stairs renovation                                                                 4 years
C FLOOR ROOM RENOVATION                                                                5 years
Villa renovation                                                                       5 years
Swimming pool renovation                                                               5 years


33. Contract liabilities

34. Employee compensation

(1) Accounting method for short-term compensation


During the accounting period when employees serve the Company, the actual short-term compensation is
recognized as liabilities and included in current profit and loss or costs associated with assets.
The appropriate amount of employee compensation payable will be determined during the accounting period
when the employees provide services for the Company based on the medical insurance, work injury insurance and
maternity insurance and other social insurance and housing fund paid by the Company for employees, as well as
trade union funds and employee education funds withdrawn according to provisions at the accrual basis and
accrual ratio.

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The employee benefits in the non-monetary form shall be measured at fair value.


(2)Accounting method for dismissal welfare

When the Company fails to unilaterally withdraw the dismissal benefits offered due to the termination of the
labor relation plan or layoff proposal, or confirms the costs or fees associated with the reorganization
involving the payment of the dismissal benefits (whichever is earlier), the employee compensation liabilities
arising from the confirmation of dismissal benefits are included in the current profit or loss.


(3) Accounting method for post-employment benefits


The Company pays the basic endowment insurance premiums and unemployment insurance for employees
according to the relevant provisions of the local governments. During the accounting period when employees
serve the Company, the paid amount which is calculated based on the payment base and proportion as
stipulated in the provisions of the local place is recognized as liabilities and included in the current profit or
loss or assets-related assets cost.


(4) Accounting method for other long-term employee welfare

35. Lease liability

36. Estimated liabilities

When the Company is involved in litigation, debt guarantees, loss-making contract, reorganization matters, if such
matters are likely to be satisfied by delivery of assets or provision of services in the future and the amount can be
measured reliably, they shall be recognized as estimated liabilities.


1) Recognition criteria for estimated liabilities

When an obligation relating to a contingency meets all the following conditions at the same time, it is recognized
as an estimated liability:
(1) Such obligation is a present obligation of the Company;
(2) The performance of such obligation may well cause outflows of economic benefits from the Company; and
(3) The amount of such obligation can be measured reliably.


2) Measurement method of estimated liabilities

The estimated liabilities of the Company are initially measured as the best estimate of expenses required for the
performance of relevant present obligations.
When the Company determines the best estimate, it should have a comprehensive consideration of risks with

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respect to contingencies, uncertainties and the time value of money. If the time value of money is significant, the
best estimates will be determined after discount of relevant future cash outflows.
The best estimates shall be treated as follows in different circumstances:
If there is continuous range (or interval) for the necessary expenses, and probabilities of occurrence of all the
outcomes within this range are equal, the best estimates will be determined at the average amount of upper and
lower limits within the range.
If there is no continuous range (or interval) for the necessary expenses, or probabilities of occurrence of all the
outcomes within this range are unequal despite such a range exists, in case that the contingency involves a single
item, the best estimate shall be determined at the most likely outcome; if the contingency involves two or more
items, the best estimate should be determined according to all the possible outcomes with their relevant
probabilities.
When all or part of the expenses necessary for the settlement of estimated liabilities of the Company are expected
to be compensated by a third party, the compensation shall be separately recognized as an asset only when it is
virtually certain to be received. The compensation recognized shall not exceed the book value of the estimated
liabilities.



37. Share-based payment

38. Other financial instrument as preferred stock and perpetual bond etc.

39. Revenue

Does the Company need to comply with the disclosure requirement of the special industry
No
Whether the new revenue standards been implemented
□Yes √No


40. Government grants

1) Type
Government grants refer to the monetary or non-monetary assets obtained by the Company from the
government for free. Government grants are divided into asset-related government grants and income-related
government grants.


Asset-related government grants refer to government grants obtained by the Company for forming long-term
assets by acquisition, construction or other manners. Income-related government grants refer to government
grants excluding the asset-related government grants.




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2)Recognition time and measurement
Government grants can be recognized when simultaneously meeting the following conditions:
1)   The enterprise can meet conditions attached to government grants; and


2)   The enterprise can receive government grants.


If a government grant is a monetary asset, it shall be measured at the amount received or receivable.
Government grants shall be measured at receivables when there is strong evidence at the end of the period
that such grants comply with the relevant conditions prescribed by the financial support policies and the
financial support funds are expected to be received. Other financial grants shall be confirmed according to
the amount of money received.


If government grants are non-monetary assets, they shall be measured at its fair value; and if the fair value
cannot be obtained in a reliable way, they shall be measured at a nominal amount.


3)Accounting treatment
A- Asset-related government grants
shall be used to offset the book value of relevant assets or recognized as deferred income. If asset-related
government grants are recognized as deferred income, they shall be included in profit or loss by stages by a
reasonable and systematic method within the useful lives of relevant assets. Government grants measured at
the nominal amount are directly included in the current profit or loss.


Where relevant assets are sold, transferred, scraped or damaged before the end of their lives, balance of the
relevant unallocated deferred income is transferred to the current profit and loss on asset disposal.


B- Accounting treatment will be conducted for government grants associated with income in accordance
with the following provisions:
a) government grants associated with income that are used to recover relevant costs or losses of the
enterprise in subsequent period are recognized as deferred income and included in the current profit or loss
when relevant costs or losses are recognized;


b) If government grants related to income are used to compensate the relevant costs and losses that have
occurred, such government grants should be directly included in the current profit or loss.


c)Where both the asset-related government grants and income-related government grants are covered, the
accounting treatment should be done respectively by distinguishing the asset-related government grants and

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income-related government grants; if it is difficult to distinguish, these government grants will be classified
into the income-related government grants as a whole.


C-Any government grant related to the daily activities of an enterprise shall be included into other income in
accordance with the business nature. Government grants unrelated to the daily activities of enterprises shall
be recorded as non-operating revenues and expenditures.


41. Deferred tax assets and deferred tax liabilities
Deferred tax assets are recognized for deductible temporary differences to the extent that it shall not exceed
the taxable income probably obtained in future period that can be used for deducting the deductible
temporary differences.


Taxable temporary differences are recognized as deferred tax liabilities in addition to special circumstances.


Special circumstances in which deferred income tax assets or deferred income tax liabilities shall not be
recognized include: the initial recognition of goodwill; other transactions or matters excluding business
combinations, which affect neither accounting profits nor the taxable income (or deductible losses) when
occurred.


When the Company has the statutory right to do settlement with the net amounts, and has the intention to do
so or the recovery of assets and the settlement of liabilities are achieved simultaneously, the Company shall
present its current income tax assets and current income tax liabilities at the net amounts as the result of one
offsetting another.


When the Company has the legal rights to balance income tax assets and income tax liabilities for the current
period with net settlement, and deferred income tax assets and deferred income tax liabilities are related to
the income tax which are imposed on the same taxpaying subject by the same tax collection authority or on
different taxpaying subjects, but, in each important future period in connection with the reverse of deferred
income tax assets and liabilities, the involved taxpaying subject intends to balance income tax assets and
liabilities for the current period with net settlement at the time of obtaining assets and discharging liabilities,
deferred income tax assets and deferred income tax liabilities shall be presented based on the net amount
after offset.




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42.   Lease

(1) Accounting treatment of operating lease


1) Accounting treatment of assets leased
The rental fees paid for the asset leased by the Company will be amortized over the entire lease term without
deducting rent-free period according to the straight-line method and included in the expenses for the current
period. The initial direct costs related to the lease transactions paid by the Company are included in the
current expenses.


When assets lessor bears costs related to the lease borne by the Company, the Company shall deduct the part
of expenses from the total rents and amortize the rents after deduction over the lease term and include them
in current expenses.


2)Accounting treatment of leasing-out assets
Lease fees received by the Company from leasing assets shall be amortized at straight-line method over the
whole lease period including rent-free period, and shall be recognized as lease income. Initial direct costs
relating to lease transactions incurred by the Company shall be recognized as the current expenses; if the
amounts are significant, they shall be capitalized and included in the current income on the same basis as the
recognition of lease income.


When the Company bears costs related to the lease borne by the leasee, the Company shall deduct the part of
expenses from the total rents and amortize the rents after deduction over the lease term.


(2) Accounting treatment of finance lease

43. Other principal accounting policies and accounting estimates


44. Changes to principal accounting policies and accounting estimates


(1) Changes in principal accounting policies


□Applicable√Not applicable


(2) Changes in principal accounting estimates


□Applicable√Not applicable

(3) Adjustment on relevant items of financial statement at begging of the year when initially implemented
the new financial instruments standards, new revenue standards and new leasing standards

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      □Applicable√Not applicable

      (4) Explanation of the retrospective adjustment on comparative data in the prior period while implemented
      new financial instruments standards and new leasing standards for the first time
      □Applicable√Not applicable


      45. Other

      VI.Taxation

      1. Major tax types and tax rates applicable to the Company

         Taxes                                       Basis for tax assessment                                            Tax rate
                          Output VAT is calculated based on taxable sales revenue and service revenue
Value added tax           calculated in accordance with tax laws and VAT payable or taxable sales
                                                                                                            5%, 6%, 9%, 10%, 13%
(VAT)                     revenue shall be the difference after deducting the input VAT deductible in the
                          same period
Urban maintenance
                          Levied based on VAT payable                                                       7%
and construction tax
Enterprise income
                          Levied based on the taxable income                                                25%
tax
Education surtax          Levied based on VAT payable                                                       3%
Local education
                          Levied based on VAT payable                                                       2%
surtax
Housing property          Remaining value after deducting 30% from the original value of the house
                                                                                                            1.2%, 12%
tax                       (including the occupied land price), and rent revenue
Land use tax              Land area                                                                         RMB 18 / m2

      Disclose reasons for different taxpaying body: Nil


      2. Tax preference

      3. Other

      VII. Notes to the items of financial statements

      1.Monetary Fund

                                                                                                                                In RMB/CNY

                           Item                                   Ending balance                             Beginning balance
         Cash on hand                                                               476,191.77                                      347,782.65
         Bank deposits                                                            15,634,704.18                               15,016,572.65
         Total                                                                    16,110,895.95                               15,364,355.30

      Other explanation: nil




                                                                         83
                     司公限有份股心中游旅海东大南海                                                                   2019    文全告报度年半年
        2. Trading securities: nil

        3. Derivative financial assets: nil

        4. Note receivable: nil

        5. Accounts receivable

        (1)Disclosure of account receivables by category

                                                                                                                                        In RMB/CNY

                                                    Ending balance                                                Beginning balance
                                                        Provision for bad                                                  Provision for bad
                             Book balance                                                        Book balance
    Category                                                  debt                                                               debt
                                                                                Book value                                                         Book value
                                         Proporti                    Provisio                              Proporti                     Provisi
                          Amount                       Amount                                 Amount                   Amount
                                           on                         n ratio                                on                         on ratio
Accounts
receivable with
provision for bad
debts based on
single item
Accounts
receivable with
provision for bad        230,062.48      100.00%       74,075.60     32.20%     155,986.88   500,510.47    100.00%    74,075.60         14.80%     426,434.87
debts based on
portfolios
Total                    230,062.48      100.00%       74,075.60     32.20%     155,986.88   500,510.47    100.00%    74,075.60         14.80%     426,434.87

        Provision for bad debts based on single item: nil
        Provision for bad debt based on portfolios: nil


        If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, please
        refer to the disclosure of other receivables to disclose the related information on bad debts:
        □Applicable√Not applicable
        Released by account age
                                                                                                                                        In RMB/CNY

                                         Account age                                                      Ending balance
             Within 1 year (inclusive)                                                                                                  139,108.68
             1-2 years                                                                                                                       566.00
             2-3 years                                                                                                                       785.00
             3-4 years                                                                                                                   18,633.00
             4-5 years                                                                                                                     3,397.00
             Over 5 years                                                                                                                67,572.80
             Total                                                                                                                      230,062.48


                                                                                 84
         司公限有份股心中游旅海东大南海                                                                           2019   文全告报度年半年
(2)Provision, reversal or recovery of provision for bad debts in the period

Provision for bad debt in the period
                                                                                                                                In RMB/CNY

                                                                    Amount changed in the period
                                   Beginning
          Category                                                              Reversal or                                Ending balance
                                    balance             Accrual                                      Charge off
                                                                              switch-back
 Based on portfolios                 74,075.60                                                                                     74,075.60
 Total                               74,075.60                                                                                     74,075.60

Including the major amount that reversal or switch-back in the period: nil


(3)Account receivable actually charge off in the period: nil

(4)Top five accounts receivable in terms of ending balance collected by the debtor

                     Name                          Relationship with     Book balance         Account age     Proportion in total amount of
                                                     the Company                                                  accounts receivable(%)
Shanghai     Hecheng      International    Travel Non-related party         35,788.40         Within 1 year                15.56%
Service Co., Ltd.
Yangpu      Huayu       Road       and    Bridge Non-related party          18,633.00         Over 5 years                 8.10%
Technology Co., Ltd.
Guangzhou Institute of Design                      Non-related party        38,980.00         Over 5 years                 16.94%
Shenzhen Tenpay Technology Co., Ltd.               Non-related party        46,621.46         Within 1 year                20.26%
Tianjin    Watermelon          Tourism    Limited Non-related party         24,414.82         Within 1 year                10.61%
Liability Company
                       Total                                                164,437.68                                     71.47%


(5)Account receivable that are terminated due to financial assets transfer: nil

(6)Assets and liabilities resulted by account receivable transfer and continues involvement : nil

6. Receivable financing: nil

7. Advance payment

(1)Disclosure of advance payment by account age

                                                                                                                                In RMB/CNY

                                                  Ending balance                                       Beginning balance
         Account age
                                         Amount                    Proportion                   Amount                     Proportion

 Within 1 year                                396,882.60                    100.00%                  39,960.01                      100.00%




                                                                       85
         司公限有份股心中游旅海东大南海                                                                   2019   文全告报度年半年
 Total                                    396,882.60            --                           39,960.01                   --

Explanation on reasons of failure to settle on important advance payment with age over one year: Nil


(2)Top five advances payment in terms of the ending balance collected by the prepaid object


Shenzhen J&J Space Design Co., Ltd.                                        213,592.23                          53.82%
Sanya Shengxiang Mechatronics Engineering Co., Ltd.                        110,415.00                          27.82%
Hainan Haolong Fire Engineering Co., Ltd.                                   58,925.37                          14.85%
Sanya Xingcai Electrical Co., Ltd.                                          13,230.00                            3.33%
Business Daily of International Tourism Island                                  720.00                           0.18%
                                  Total                                    396,882.60
Other explanation: nil


8. Other receivable

                                                                                                                          In RMB/CNY

                    Item                                  Ending balance                               Beginning balance
 Other receivable                                                        1,242,181.64                                      458,242.73
 Total                                                                   1,242,181.64                                      458,242.73


(1)Interest receivable: Nil

(2)Dividend receivable: Nil

(3)Other account receivables

1)Other account receivable disclosed by nature
                                                                                                                          In RMB/CNY

                         Nature                             Ending book balance                   Opening book balance
 Utility bills                                         206,254.34                        185,368.69
 Petty cash                                            838,955.14                        133,411.23
 Attorney fee                                          77,534.25                         77,534.25
 Court cost                                            62,970.00
 Social insurance and housing provident funds          57,803.91                         63,264.56
 Deposit                                               600.00                            600.00
 Total                                                 1,244,117.64                      460,178.73

2)Provision for bad debt: nil
Change of the book balance for major amount changed in loss provision
□Applicable√Not applicable
Released by account age
                                                                                                                          In RMB/CNY



                                                                86
         司公限有份股心中游旅海东大南海                                                                     2019     文全告报度年半年
                             Account age                                                       Ending balance
 Within 1 year (inclusive)                                            1,241,881.64
 4-5 years                                                            600.00
 Over 5 years                                                         1,636.00
 Total                                                                1,244,117.64

3)Provision, reversal or recovery of provision for bad debts in the period
Provision for bad debt in the period
                                                                                                                               In RMB/CNY

                                                                   Amount changed in the period
          Category              Beginning balance                                         Reversal or                Ending balance
                                                               Accrual
                                                                                          switch-back
 Based on portfolios         1,936.00                                                                           1,936.00
 Total                       1,936.00                                                                           1,936.00

Including major amount reversal or switch-back in the period: nil

4)Other receivables actually charge off in the period: nil
5)Top five other accounts receivable in terms of ending balance collected by the debtor
                                                                                                                               In RMB/CNY

                                                 Ending        Account         Proportion in total amount of other         Ending balance of
             Name                   Nature
                                                 balance           age         accounts receivable at period-end        provision for bad debt
                                                              Within 1
 Wen Ping                      Petty cash      710,000.00                    57.16%                                     0.00
                                                              year
 Hainan New Concept                                           Within 1
                               Attorney fee    77,534.25                     6.23%                                      0.00
 Law Firm                                                     year
                                                              Within 1
 Peng Guoxing                  Utility bills   70,422.98                     5.66%                                      0.00
                                                              year
 Sanya Suburbs People’s                                      Within 1
                               Court cost      62,970.00                     5.06%                                      0.00
 Court                                                        year
                                                              Within 1
 Guo Yubo                      Petty cash      60,369.61                     4.85%                                      0.00
                                                              year
 Total                         --              981,296.84     --             78.88%                                     0.00

6)Account receivables related to government subsidies: Nil
7)Other receivable for termination of confirmation due to the transfer of financial assets: Nil
8)The amount of assets and liabilities that are transferred other receivable and continued to be involved: Nil


9. Inventories

Whether the new revenue standards been implemented
□Yes √No


(1)category of inventories

                                                                                                                               In RMB/CNY

                                                                    87
         司公限有份股心中游旅海东大南海                                                                      2019   文全告报度年半年
                                         Ending balance                                          Beginning balance
         Item                             Provision for                                             Provision for
                     Book balance                            Book value       Book balance                               Book value
                                          price decline                                             price decline
 Raw materials      836,342.72        683,941.58           152,401.14        870,043.52           725,731.58           144,311.94
 Finished goods     22,771.38         11,102.41            11,668.97         22,771.38            11,102.41            11,668.97
 Food and
                    12,526.82                              12,526.82         43,935.10                                 43,935.10
 beverage
 Fuel               15,096.64                              15,096.64         21,474.18                                 21,474.18
 Total              886,737.56        695,043.99           191,693.57        958,224.18           736,833.99           221,390.19

Does the Company comply with the disclosure requirement of          “Information Disclosure Guidelines of Shenzhen Stock Exchange
No.4–Listed Companies Engaged in Seed Industry and Planting Business” or not
No


(2)Provision for inventory depreciation

                                                                                                                          In RMB/CNY

                                               Increase in the period              Decrease in the period
                      Beginning
         Item                                                                  Reversal or                             Ending balance
                          balance           Accrual             Others                                   Others
                                                                                 write-off
 Raw materials      725,731.58                                               41,790.00                                 683,941.58
 Finished goods     11,102.41                                                                                          11,102.41
 Total              736,833.99                                               41,790.00                                 695,043.99


(3) Explanation on capitalization of borrowing costs at ending balance of inventory: Nil

(4) Assets completed without unsettlement from construction contract at period-end: Nil

10. Contract assets: nil

11. Assets held for sale: nil

12. Non-current assets maturing within one year: nil

13. Other current assets

Whether the new revenue standards been implemented
□Yes √No
                                                                                                                          In RMB/CNY

                   Item                                    Ending balance                                 Beginning balance
 Enterprise income tax paid in advance        1,702,702.80                                   1,702,702.80
 Input tax to be deducted                     385,035.78                                     103,556.98
 Prepaid pending expenses                     37,880.58                                      39,960.01
 Total                                        2,125,619.16                                   1,846,219.79


                                                                  88
      司公限有份股心中游旅海东大南海                                                          2019   文全告报度年半年
Other explanation: nil


14. Creditors investment: nil

15. Other creditors investment: nil

16. Long-term account receivable: nil

17. Long-term equity investment: nil

18. Investment in other equity instrument: nil

19. Other non-current financial assets: nil

20. Investment property

(1)Investment properties measured at cost

√Applicable□Not applicable
                                                                                                            In RMB/CNY

                                                                            Construction in
               Item               Houses and buildings    Land use rights                                Total
                                                                               process
 I. Original book value
 1.Beginning balance              18,856,504.44          5,662,740.59                          24,519,245.03
 2.Increase in the period
 (1)Outsourcing
 (2)Transfer from
 inventories/fixed
 assets/construction in process
 (3)Increase from business
 combinations


 3.Decrease in the period
 (1)Disposal
 (2)Other transfer-out


 4.Ending balance                 18,856,504.44          5,662,740.59                          24,519,245.03
 II. Accumulated depreciation
 and accumulated amortization
 1.Beginning balance              10,607,583.54          2,219,726.45                          12,827,309.99
 2.Increase in the period         209,091.78             28,170.00                             237,261.78
 (1)Accrual or amortization       209,091.78             28,170.00                             237,261.78




                                                              89
          司公限有份股心中游旅海东大南海                                                                    2019   文全告报度年半年
  3.Decrease in the period
  (1)Disposal
  (2)Other transfer-out


  4.Ending balance                  10,816,675.32            2,247,896.45                                     13,064,571.77
  III. Provision for impairment
  1.Beginning balance               1,404,400.47             1,903,054.14                                     3,307,454.61
  2.Increase in the period
  (1)Accrual


  3. Decrease in the period
  (1)Disposal
  (2)Other transfer-out


  4.Ending balance                  1,404,400.47             1,903,054.14                                     3,307,454.61
  IV. Book value
  1.Ending book value               6,635,428.65             1,511,790.00                                     8,147,218.65
  2.Opening book value              6,844,520.43             1,539,960.00                                     8,384,480.43


 (2)Investment real estate measured by fair value

 □Applicable√Not applicable


 (3)Investment real estate without property certification held: Nil

 21. Fixed assets

                                                                                                                         In RMB/CNY

                     Item                                   Ending balance                              Beginning balance
  Fixed assets                                   34,997,520.16                              36,497,869.65
  Total                                          34,997,520.16                              36,497,869.65


 (1) Fixed assets details

                                                                                                                         In RMB/CNY
                                    Houses and         Mechanical        Transportatio    Electronic          Other
              Item                                                                                                            Total
                                     buildings          equipment        n equipment      equipment         equipment
I. Original book value   :
  1.Beginning balance             136,789,501.82      11,033,550.54      2,345,074.91    2,664,528.39    1,926,451.84    154,759,107.50
  2.Increase in the period                                                               20,635.87       20,101.94       40,737.81
    (1)Purchase                                                                          20,635.87       20,101.94       40,737.81
    (2)Transfer from
construction in process


                                                                    90
        司公限有份股心中游旅海东大南海                                                                2019   文全告报度年半年
     (3)Increase from business
combinations


  3.Decrease in the period                        1,420,474.00                       619,394.00     193,633.45     2,233,501.45
     (1)Disposal or scrap                         1,420,474.00                       619,394.00     193,633.45     2,233,501.45


  4.Ending balance               136,789,501.82   9,613,076.54        2,345,074.91   2,065,770.26   1,752,920.33   152,566,343.86
II. Accumulated depreciation
  1.Beginning balance            72,499,344.50    7,970,060.88        1,587,022.54   1,938,853.10   1,224,791.47   85,220,072.49
  2.Increase in the period       1,087,717.44     143,758.48          82,783.92      87,864.93      87,053.97      1,489,178.74
     (1)Accrual                  1,087,717.44     143,758.48          82,783.92      87,864.93      87,053.97      1,489,178.74


  3.Decrease in the period                        1,008,698.30                       595,910.37     173,760.82     1,778,369.49
     (1)Disposal or scrap                         1,008,698.30                       595,910.37     173,760.82     1,778,369.49


  4.Ending balance               73,587,061.94    7,105,121.06        1,669,806.46   1,430,807.66   1,138,084.62   84,930,881.74
III. Provision for impairment
  1.Beginning balance            31,072,788.17    1,968,377.19                                                     33,041,165.36
  2.Increase in the period
     (1)Accrual


  3.Decrease in the period                        403,223.40                                                       403,223.40
     (1)Disposal or scrap                         403,223.40                                                       403,223.40


  4.Ending balance               31,072,788.17    1,565,153.79                                                     32,637,941.96
IV. Book value
  1.Ending book value            32,129,651.71    942,801.69          675,268.45     634,962.60     614,835.71     34,997,520.16
  2.Opening book value           33,217,369.15    1,095,112.47        758,052.37     725,675.29     701,660.37     36,497,869.65




                                                                 91
      司公限有份股心中游旅海东大南海                                                 2019   文全告报度年半年
(2) Temporarily idle fixed assets: Nil

(3) Fixed assets acquired by financing lease: Nil

(4) Fixed assets acquired by operating lease: Nil

(5) Certificate of title un-completed: Nil

(6) Disposal of fixed assets: Nil

22. Construction in process: Nil

23. Productive biological asset

(1)Measured by cost

□Applicable√Not applicable


(2)Measured by fair value

□Applicable√Not applicable


24. Oil and gas assets

□Applicable√Not applicable


25. Right-of-use assets: Nil

26. Intangible assets

(1)Intangible assets

                                                                                                  In RMB/CNY

                                                                       Non-patents
              Item               Land use rights   Patent right                                   Total
                                                                       technology
 I. Original book value
      1.Beginning balance        81,653,137.15                                              81,653,137.15
      2.Increase in the
 period
          (1)Purchase
          (2)Internal research
 and development
          (3)Increase from
 business combinations


                                                                  92
      司公限有份股心中游旅海东大南海                                                                     2019   文全告报度年半年
   3.Decrease in the period
          (1)Disposal


      4.Ending balance          81,653,137.15                                                                   81,653,137.15
 II. Accumulated
 amortization
      1.Beginning balance       32,007,051.27                                                                   32,007,051.27
      2.Increase in the
                                406,193.58                                                                      406,193.58
 period
          (1)Accrual            406,193.58                                                                      406,193.58


      3.Decrease in the
 period
          (1)Disposal


      4.Ending balance          32,413,244.85                                                                   32,413,244.85
 III. Provision for
 impairment
      1.Beginning balance       27,440,836.84                                                                   27,440,836.84
      2.Increase in the
 period
          (1)Accrual


      3.Decrease in the
 period
      (1)Disposal


      4.Ending balance          27,440,836.84                                                                   27,440,836.84
 IV. Book value
      1.Ending book value       21,799,055.46                                                                   21,799,055.46
      2.Opening book value      22,205,249.04                                                                   22,205,249.04

Ratio of the intangible assets from internal R&D in balance of intangible assets at period-end was 0%.


(2)Land use rights without certificate of ownership: Nil

27. Development expenditure: Nil

28. Goodwill: Nil

29. Long-term deferred expenses

                                                                                                                      In RMB/CNY


                                                                 93
            司公限有份股心中游旅海东大南海                                                                   2019   文全告报度年半年
                                           Beginning          Increase in the    Amortization in
                    Item                                                                            Other decreased       Ending balance
                                             balance              period           the period
Maintenance fee for main engine
                                                             50,116.50                                                   50,116.50
system of the central AC
Renovation of guest rooms in
                                         486,974.57                             292,184.70                               194,789.87
Building-B
Fire stairs renovation in Building-A     45,695.20                              8,567.82                                 37,127.38
Renovation of guest rooms in
                                         2,260,206.30                           301,360.80                               1,958,845.50
Building-C, villa and swimming pool
Total                                    2,792,876.07        50,116.50          602,113.32                               2,240,879.25

    Other explanation: nil


    30. Deferred income tax assets and deferred income tax liabilities: Nil

    31. Other non-current assets

    Whether the new revenue standards been implemented
    □Yes √No
    Other explanation: nil


    32. Short-term loans: Nil

    33. Trading financial liability: nil

    34. Derivative financial liability: nil

    35. Notes payable: Nil

    36. Accounts payable

    (1)Presentation of accounts payable

                                                                                                                          In RMB/CNY

                           Item                                Ending balance                             Beginning balance
        Payment for purchase                     170,266.19                                  687,690.30
        Accounts payable provisionally
                                                 660,218.61                                  534,359.35
        estimated
        Service charges                          93,168.29                                   155,368.88
        Payment for projects                     14,274.10                                   134,274.10
        Elevator maintenance fee                 31,670.00                                   31,670.00
        Advertisement fees                       30,500.30                                   31,195.28
        Consignment sales                                                                    22,335.90
        Other                                    1,093.00                                    10,942.00


                                                                     94
         司公限有份股心中游旅海东大南海                                                                  2019   文全告报度年半年
 Water rate                                52,428.54
 Natural gas fee                           23,398.40
 Total                                     1,077,017.43                                 1,607,835.81


(2)Major account payable with over one year account age: nil

37. Advances from customers

Whether the new revenue standards been implemented
□Yes √ No


(1)Presentation of advances from customers

                                                                                                                       In RMB/CNY

                   Item                                 Ending balance                               Beginning balance
 Room and meal charge                      779,681.12                                   1,291,293.05
 Total                                     779,681.12                                   1,291,293.05


(2)Significant advances from customers with aging more than one year


                                                                                                                       In RMB/CNY

                                                                                             Reasons for failure of repayment or
                          Item                                 Ending balance
                                                                                                       carry-forward
 Guangzhou Nanbu Holiday International Travel
                                                          101,244.00                    Unsettled
 Service Co., Ltd. Sanya Branch
 Hainan Xiangyuan Tourism Development Co., Ltd.           39,851.00                     Unsettled
 PEGAS Zheng Qingbo                                       32,243.02                     Unsettled
 Hainan Qiongzhong Ecological Investment Guarantee
                                                          22,926.00                     Unsettled
 Co., Ltd.
 Sanya City Public Security Fire Brigade                  19,420.88                     Unsettled
 Total                                                    215,684.90                    --


(3)Projects settlement without unfinished at period-end from construction contract: Nil

38. Contract liability: nil

39. Employee compensation payable

(1)Classification of employee compensation payable

                                                                                                                       In RMB/CNY

                                                           Increase in the
                Item                Beginning balance                           Decrease in the period          Ending balance
                                                               period


                                                              95
         司公限有份股心中游旅海东大南海                                                                     2019   文全告报度年半年
 I. Short-term compensation          2,841,262.35           6,031,396.03         7,044,691.32                 1,827,967.06
 II. Post-employment benefits -
                                                            547,368.99           547,368.99
 defined contribution plans
 Total                               2,841,262.35           6,578,765.02         7,592,060.31                 1,827,967.06


(2)Presentation of short-term compensation

                                                                                                                           In RMB/CNY

                                                             Increase in the
               Item                 Beginning balance                            Decrease in the period            Ending balance
                                                                   period
 1. Salaries, bonuses,
                                   1,762,269.70            4,759,360.01          5,722,074.66                 799,555.05
 allowances and subsidies
 2. Employee welfare expenses                              759,981.75            759,981.75
 3. Social insurance premiums                              255,539.72            255,539.72
      Including: medical
                                                           236,205.39            236,205.39
 insurance premiums
              Work-related
                                                           4,568.36              4,568.36
 injury insurance premiums
              Maternity
                                                           14,765.97             14,765.97
 insurance premiums
 4. Housing provident funds                                90,050.00             90,050.00
 5. Labor union expenditures
                                   1,078,992.65            166,464.55            217,045.19                   1,028,412.01
 and employee education funds
 Total                             2,841,262.35            6,031,396.03          7,044,691.32                 1,827,967.06


(3)Presentation of defined contribution plans

                                                                                                                           In RMB/CNY

            Item               Beginning balance        Increase in the period   Decrease in the period            Ending balance
 1. Basic endowment
                                                       532,614.48                532,614.48
 insurance premiums
 2. Unemployment
                                                       14,754.51                 14,754.51
 insurance premiums
 Total                                                 547,368.99                547,368.99

Other explanation: nil


40. Taxes payable

                                                                                                                           In RMB/CNY

                      Item                                 Ending balance                                Beginning balance
 Value added tax (VAT)                      565,131.47                                      146,863.56
 Individual income tax                      25,850.99                                       -0.02
 Urban maintenance and construction tax     2,108.62                                        761.67

                                                                   96
         司公限有份股心中游旅海东大南海                                                                2019   文全告报度年半年
 Housing property tax                     97,050.95                                    194,101.69
 Land use tax                             54,295.47                                    108,590.92
 Education surtax                         903.68                                       326.42
 Local education surtax                   602.48                                       217.63
 Total                                    745,943.66                                   450,861.87

Other explanation: nil


41. Other account payable

                                                                                                                    In RMB/CNY

                    Item                                Ending balance                              Beginning balance
 Other account payable                    2,942,968.71                                 2,727,483.66
 Total                                    2,942,968.71                                 2,727,483.66


(1)Interest payable: Nil

(2)Dividend payable: Nil

(3)Other account payable

1)Presentation of other account payable by nature
                                                                                                                    In RMB/CNY

                    Item                                Ending balance                              Beginning balance
 Employee dormitory rental fees, etc.                                    975,525.11                                     971,723.12
 Margin                                                                   20,000.00                                     890,958.75
 Audit fee                                                               285,003.21                                     285,003.21
 Quality guarantee deposit for projects                                  204,180.90                                     190,344.00
 Employee deposit                                                         86,520.00                                     165,700.90
 Payment for projects                                                    161,111.03                                     162,569.78
 Funds collected and remitted                                            793,268.57                                      36,408.47
 Individual current amounts                                                1,315.34                                       1,364.00
 Electric charges withheld                                                24,494.55                                      23,411.43
 Announcement fee                                                        391,550.00
 Total                                                               2,942,968.71                                  2,727,483.66


2)Other significant        account payable with aging of over one year

                                                                                                                    In RMB/CNY

                    Item                           Ending balance           Reasons for failure of repayment or carry-forward
 Yangpu Jinyu Industrial Co., Ltd.        627,000.00                       Unsettled
 Hong Kong Deloitte & Touche LLP          285,003.21                       Unsettled
 Sanya Shuxin Housing Waterproof
                                          170,000.00                       Unsettled
 Engineering Co., Ltd.

                                                              97
         司公限有份股心中游旅海东大南海                                                                   2019   文全告报度年半年
 China Building Decoration Company
                                              161,111.03                       Unsettled
 Hainan Branch
 Total                                        1,243,114.24                     --

Other explanation: nil


42. Liability held for sale: Nil

43. Non-current liability due within one year: Nil

44. Other current liability: Nil

45. Long-term loans: Nil

46. Bond payable: Nil

47. Lease liability: nil

48. Long-term account payable: nil

49. Long-term employee payable: nil

50. Estimated liabilities

Whether the new revenue standards been implemented
□Yes √No
                                                                                                                         In RMB/CNY

               Item                   Ending balance              Beginning balance                          Reasons

                                                                                             Provisions for arrears of electricity
 Other                                       1,489,685.04                    1,489,685.04
                                                                                             tariffs

 Total                                       1,489,685.04                    1,489,685.04                        --

Other explanation, including important assumptions and estimation for the major accrual liability: nil
On May 26, 2016, the Company received a lawyer letter from Hainan Yunfan Law Firm entrusted by Sanya Power Supply Bureau of
Hainan Power Grid Co., Ltd. (hereinafter referred to as "Sanya Power Supply Bureau"), saying that Sanya Power Supply Bureau
found, in verifying electricity consumption by South China Hotel, a subsidiary of the Company, that the current transformer (CT)
installed in the distribution center metering counters in South China Hotel installed was inconsistent with the record in the marketing
management system file of Sanya Power Supply Bureau, and the duration of the inconsistence was from July 2006 when South China
Hotel changed its electricity consumption measuring device to April 2016. According to the statistics, electricity consumption of
10313373 KWH was measured in short, which was estimated to be valued at RMB 7,200,165.75 according to the electricity prices
and surcharge rates in the years.


According to the Legal Consultation Advice on Electricity Quantity (Electricity Charge) Claiming Dispute between South China
Hotel and Sanya Power Supply Bureau issued by Beijing Junhe (Haikou) Law Firm on December 20, 2016, as all electricity


                                                                  98
         司公限有份股心中游旅海东大南海                                                                           2019   文全告报度年半年
consumption metering devices are purchased, installed, sealed, opened and replaced by Sanya Power Supply Bureau Responsible, the
short measurement of electricity charge from South China Hotel for many years was due to the fault of Sanya Power Supply Bureau,
and was irrelevant to South China Hotel. Pursuant to Article 135 of the General Principles of Civil Law: "Except as otherwise
stipulated by law, the limitation of action regarding applications to a people's court for protection of civil rights shall be two years.,
the Company accrued an amount of RMB 1,489,685.04 for the electricity charge for electricity quantity measured in short during two
years from April 2014 to April 2016.


51. Deferred income: nil

52. Other non-current liability: nil

Whether the new revenue standards been implemented
□Yes √No


53. Share capital

                                                                                                                                In RMB/CNY

                                                       Changes ( "+" for increase and "-" for decrease)
                     Beginning                                              Public
                                          Issuance                                                                          Ending balance
                         balance                           Share           reserve
                                           of new                                              Others       Sub-total
                                                          donation      transferred to
                                           shares
                                                                            shares
 Total shares      364,100,000.00                                                                                           364,100,000.00

Other explanation: nil


54. Other equity instrument: nil

55. Capital reserves

                                                                                                                                In RMB/CNY

            Item                   Beginning balance        Increase in the period       Decrease in the period          Ending balance
 Capital premium
                                         33,336,215.58                                                                       33,336,215.58
 (share premium)
 Other capital reserves                  20,806,634.43                                                                       20,806,634.43
 Total                                   54,142,850.01                                                                       54,142,850.01

Other explanation, including changes in the period and reasons: nil




                                                                      99
         司公限有份股心中游旅海东大南海                                                                       2019   文全告报度年半年
56. Treasury stock: nil

57. Other consolidated income: nil

58. Reasonable reserve: nil

59. Surplus reserves: nil

60. Undistributed profits

                                                                                                                              In RMB/CNY

                                        Item                                                Current period             Last period
 Undistributed profits at the end of last year before adjustment                             -340,454,153.72            -341,107,435.91
 Undistributed profits at the beginning of the year after adjustment                         -340,454,153.72            -341,107,435.91
 Plus: net profit attributable to owners of the parent company in current period                  755,974.01                1,282,165.58

 Undistributed profit as at the end of the year                                              -339,698,179.71            -339,825,270.33

Details about adjusting the retained profits at the beginning of the period:
1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations affect the retained
profits at the beginning of the period amounting to 0 Yuan.
2) The changes in accounting policies affect the retained profits at the beginning of the period amounting to 0 Yuan.
3) The major accounting error correction affects the retained profits at the beginning of the period amounting to 0 Yuan
4) Merge scope changes caused by the same control affect the retained profits at the beginning of the period amounting to 0 Yuan.
5) Other adjustments affect the retained profits at the beginning of the period amounting to 0 Yuan


61. Operating income and operating costs

                                                                                                                              In RMB/CNY

                                                  Current period                                        Last period
             Item
                                     Income                        Cost                      Income                         Cost
 Main business                        14,241,961.04                5,514,477.93               16,173,929.32                 6,000,063.36
 Total                                14,241,961.04                5,514,477.93               16,173,929.32                 6,000,063.36

Whether the new revenue standards been implemented
□Yes √No
Other explanation: nil


62. Taxes and surcharges

                                                                                                                              In RMB/CNY

                    Item                                      Current period                                  Last period
 Urban maintenance and construction tax                                         31,410.84                                      37,515.65
 Education surtax              &en